The Effect of Information on Auction Outcomes: A Large Scale Field Experiment∗
نویسندگان
چکیده
We study the effect of information on market outcomes using a field experiment. By randomly manipulating the availability of information about wholesale automobile quality, we measure the effect of information on market outcomes. As the theoretical literature predicts, more information increases expected revenues. However, the biggest gains in revenue are for the lowest and highest quality grades of automobiles. This suggests that the increase in revenues is due to better matching of buyers to vehicles, and is less a consequence of lower information rents. Finally, we quantify the value of gathering information and releasing it to buyers in this setup. JEL classifications C93, D44, D82, L15 ** VERY PRELIMINARY AND INCOMPLETE ** ∗We are grateful to the management and employees of the firm that provided the data and worked cooperatively with us to implement the experiment. We also thank ... for helpful discussions. Tadelis thanks the National Science Foundation for financial support.
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