A Theory of Jump Bidding in Ascending Auctions

R. Isaac, Tim Salmon and Arthur Zillante

Game Theory and Information from University Library of Munich, Germany

Abstract: Jump bidding is a commonly observed phenomenon that involves bidders in ascending auctions submitting bids higher than required by the auctioneer. Such behavior is typically explained as due to irrationality or to bidders signaling their value. We present field data that suggests such explanations are unsatisfactory and construct an alternative model in which jump bidding occurs due to strategic concerns and impatience. We go on to examine the impact of jump bidding on the outcome of ascending auctions in an attempt to resolve some policy disputes in the design of ascending auctions.

Keywords: auction theory; ascending auctions; jump bidding (search for similar items in EconPapers)
JEL-codes: C9 D44 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2004-04-22
New Economics Papers: this item is included in nep-com and nep-mic
Note: Type of Document - pdf; pages: 29
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Journal Article: A theory of jump bidding in ascending auctions (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpga:0404002

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