Bidding behavior in experimental auctions with positive and negative values

Ji Yong Lee; John A.Sean Fox

doi:10.1016/j.econlet.2015.09.013

Bidding behavior in experimental auctions with positive and negative values

Ji Yong Lee, John A.Sean Fox

Research output: Contribution to journal › Article › peer-review

Abstract

We test for consistency between bids from endowment auctions that allow positive or negative bids for an exchange between two items, and bids from prior full bidding auctions for the same items. Results suggest that positive WTP bids in the endowment auction are demand revealing but subjects overbid (in absolute value) their negative WTA values. WTA bids were lower in a random nth price auction than in a 5th price auction.

Original language	English (US)
Pages (from-to)	151-153
Number of pages	3
Journal	Economics Letters
Volume	136
DOIs	https://doi.org/10.1016/j.econlet.2015.09.013
State	Published - Nov 1 2015

Keywords

Experimental auctions
Negative values
Strategic bidding

ASJC Scopus subject areas

Finance
Economics and Econometrics

Online availability

10.1016/j.econlet.2015.09.013

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title = "Bidding behavior in experimental auctions with positive and negative values",

abstract = "We test for consistency between bids from endowment auctions that allow positive or negative bids for an exchange between two items, and bids from prior full bidding auctions for the same items. Results suggest that positive WTP bids in the endowment auction are demand revealing but subjects overbid (in absolute value) their negative WTA values. WTA bids were lower in a random nth price auction than in a 5th price auction.",

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author = "Lee, {Ji Yong} and Fox, {John A.Sean}",

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AB - We test for consistency between bids from endowment auctions that allow positive or negative bids for an exchange between two items, and bids from prior full bidding auctions for the same items. Results suggest that positive WTP bids in the endowment auction are demand revealing but subjects overbid (in absolute value) their negative WTA values. WTA bids were lower in a random nth price auction than in a 5th price auction.

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KW - Strategic bidding

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ER -

Bidding behavior in experimental auctions with positive and negative values

Abstract

Keywords

ASJC Scopus subject areas

Online availability

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