Why are open ascending auctions popular? The role of information aggregation and behavioral biases

The popularity of open ascending auctions is often attributed to the fact that openly observable bidding allows aggregate dispersed information. Another reason behind frequent utilization auction formats may be they activate revenue enhancing biases. In an experiment, we compare three differ in how much information revealed and potential activation behavioral biases: (i) Vickrey auction, a closed format; two formats, (ii) Japanese–English (iii) Oral Outcry auction. Even though bidders react conveyed others' bids, aggregation fails both formats. contrast, raises higher than other by stimulating submit unprofitable jump bids triggering quasi?endowment effect.