BIDDING BEHAVIOR IN MULTI-UNIT AUCTIONS - AN EXPERIMENTAL INVESTIGATION AND SOME THEORETICAL INSIGHTS

Dirk Engelmann and Veronika Grimm ()

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: We present laboratory experiments of five different multi-unit auction mechanisms. Two units of a homogeneous object were auctioned off among two bidders with flat demand for two units. We test whether expected demand reduction occurs in open and sealed-bid uniform-price auctions. Revenue equivalence is tested for these auctions as well as for the Ausubel, the Vickrey and the discriminatory sealed-bid auction. Furthermore, we compare the five mechanisms with respect to the efficient allocation of the units. We also provide some theoretical insights concerning the equilibria of uniform-price auctions with incomplete information.

Keywords: Multi–Unit Auctions; Demand Reduction; Experimental Economics. (search for similar items in EconPapers)
JEL-codes: C91 D44 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2004-03
New Economics Papers: this item is included in nep-exp and nep-gth
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Citations: View citations in EconPapers (12)

Published by Ivie

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2004-12.pdf Fisrt version / Primera version, 2004 (application/pdf)

Related works:
Working Paper: Bidding Behavior in Multi-Unit Auctions - An Experimental Investigation and some Theoretical Insights (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2004-12

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