Optimal sequential auctions

Mireia Jofre-Bonet and Martin Pesendorfer

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Sequential sealed rst-price and open ascending bid auctions are studied. We examine which auction rule achieves the low procurement cost. We show that the answer to this policy question depends on whether the items are com- plements or substitutes. With substitutes, the rst-price auction is preferred, while with complementarities, the open ascending bid auction is preferred. We also illustrate the procurement cost minimizing auction and the auction rule preferred by the bidders. With substitutes, bidders prefer the open ascending bid auction, while with complements bidders prefer the rst-price auction.

JEL-codes: J1 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2006-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/4911/ Open access version. (application/pdf)

Related works:
Journal Article: Optimal sequential auctions (2014)
Working Paper: Optimal sequential auctions (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:4911

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