Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study
نویسندگان
چکیده
This paper considers the sealed bid and ascending auction, which both identifies the minimum Walrasian equilibrium prices and where truthful preference revelation constitutes an equilibrium. Even though these auction formats share many theoretical properties, there are behavioral aspects that are not easily captured. To explore this issue in more detail, this paper experimentally investigates what role the design of the auction format has for its outcome. The results suggest that the sealed bid mechanism performs weakly better in all of investigated measures (consistent reporting, efficiency etc.). In addition, we find that the performance of the ascending auction is increasing over time, whereas the sealed bid auction shows no such tendency. JEL Classification: C91; D44.
منابع مشابه
Accounting for Cognitive Costs in On - lineAuction
Many auction mechanisms, including rst and second price ascending and sealed bid auctions, have been proposed and analyzed in the economics literature. We compare the usefulness of diierent mechanisms for on-line auctions, focusing on the cognitive costs placed on users (e.g. the cost of determining the value of a good), the possibilities for agent mediation, and the trust properties of the auc...
متن کاملCost and Trust Issues in On-Line Auctions
Many auction mechanisms, including rst and second-price ascending and sealed-bid auctions, have been proposed and analyzed in the economics literature. We compare the usefulness of di erent mechanisms for on-line auctions, focusing on the di erent costs of determining reservation prices, determining bids and communicating bids, and on whether the auctioneer is trusted. Di erent auction formats ...
متن کاملA comparison of multi-object auction formats
We compare the performance of three alternative multi-object auction institutions: simultaneous ascending auctions with the hard closing rule, simultaneous ascending auctions with the soft closing rule, and simultaneous first price sealed bid auctions. Among the three formats, the simultaneous ascending auction with the soft closing rule is the most efficient and produces outcomes closest to th...
متن کاملZero Intelligence Plus and Gjerstad-Dickhaut Agents for Sealed Bid Auctions
The increasing prevalence of auctions as a method of conducting a variety of transactions has promoted interest in modelling bidding behaviours with simulated agent models. The majority of popular research has focused on double auctions, i.e. auctions with multiple buyers and sellers. In this paper we investigate agent models of sealed bid auctions, i.e. single seller auctions where each buyer ...
متن کاملSpeeding Up Ascending-Bid Auctions
In recent years auctions have grown in interest within the AI community as innovative mechanisms for resource allocation. The primary contribution of this paper is to identify a family of hybrid auctions, called survival auctions, which combine the benefits of both sealed-bid auctions (namely, quick and predictable termination time) and ascendingbid auctions (namely, more information revelation...
متن کامل