Sequential Auctions with Multi-Unit Demand: Theory, Experiments and Simulations

Claude Montmarquette and Jacques Robert

CIRANO Working Papers from CIRANO

Abstract: This paper presents the theory of sequential auctions when participants desire more than one unit. The theoretical predictions are compared to experimental data. We estimate structural models which presume that participants' bids are drawn from some stochastic processes. The observed behavior depends highly on the theoretical bid, however some variance in participant bids remains unexplained. The analysis of the model and of the experimental data is completed by some simulations. While the theoretical model predicts increasing prices, on average both the data and the winning bids generated by our structural models exhibit declining prices. Ce travail concerne la théorie des enchères séquentielles où les participants peuvent acheter plusieurs unités d'un bien homogène. Les prédictions théoriques des modèles sont comparées à des données expérimentales. Nous estimons des modèles structuraux qui supposent que les mises des participants sont tirées d'un processus stochastique. Le comportement observé dépend largement de la mise théorique, bien que la variance des mises demeure inexpliquée. L'analyse du modèle et des données expérimentales est complétée par des simulations. Les mises gagnantes issues des modèles structuraux montrent des prix décroissants, ce qui est contraire à la prédiction du modèle théorique.

Keywords: Sequential auctions; multi-unit demands; econometric analysis of experimental data; simulations; Enchères séquentielles multi-unitaires; données expérimentales; simulations; modèles économétriques (search for similar items in EconPapers)
Date: 1999-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:99s-46

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