'Catalogue' vs 'order-of-sale' effects in sequential auctions: Theory and evidence from a rare book sale

George Deltas, Georgia Kosmopoulou

Research output: Contribution to journalArticlepeer-review

Abstract

We examine bidding in a rare book sequential auction that has features of a natural experiment: lots were arranged in alphabetical order, the reserve set non-strategically and half the bids placed by mail-in bidders. We distinguish between the effects induced by the print order of the catalogue from those by the sequential nature of the sale. We document the existence of distinct 'catalogue' effects on prices, number of bids, and price variability and determine their causes. We demonstrate that these catalogue effects also influence floor bidder behaviour. We derive a theoretical model that generates key aspects of floor bidder behaviour.

Original languageEnglish (US)
Pages (from-to)28-54
Number of pages27
JournalEconomic Journal
Volume114
Issue number492
DOIs
StatePublished - Jan 2004

ASJC Scopus subject areas

  • Economics and Econometrics

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