Demand Reduction in Multi‐Object Auctions with Resale
An Experimental Analysis
Bibliographic Data
| ID | 9714686 |
|---|---|
| Authors | Marco Pagnozzi (Università di Napoli Federico II), Krista J Saral (0000-0002-5470-0972, Webster University Geneva) |
| Year | 2017 |
| Volume | 127 |
| Issue | 607 |
| Pages | 2702-2729 |
| Publication date | 2017-12-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12392 |
| OpenAlex | W1845859347 |
| Language | EN |
| References cited | 36 |
We analyse the effects of different resale mechanisms on bidders’ strategies in multi‐object uniform‐price auctions with asymmetric bidders. Our experiment consists of four treatments: one without resale and three resale treatments that vary the information available and the bargaining mechanism in the resale market. Resale markets induce demand reduction by high‐value bidders and speculation by low‐value bidders, thus affecting the allocation of the objects on sale. The magnitude of these effects, however, depends on the structure of the resale market. Features of the resale market that tend to increase its efficiency result in lower auction efficiency and seller's revenue
Business · Common value auction · Demand reduction · Economics · Industrial organization · Microeconomics · Object (grammar · Reduction (mathematics · Revenue · Speculation · Value (mathematics · Auction Theory and Applications · Computer Science · Consumer Market Behavior and Pricing · Experimental Behavioral Economics Studies · Finance
| Citation velocity | historical |
|---|---|
| Highly cited | No |