Simultaneous Auctions of Imperfect Goods by Sellers of Different Reputations: An Analytical Model and Laboratory Experiment

Internet auction sites have evolved into markets where commodity goods such as electronics or DVDs are traded. Often several auctions for very similar (if not identical) items run simultaneously, and unit-demand bidders must adopt global multi-auction bidding strategies. Despite the increasing practical importance of such markets, there is relatively little theory on how unit-demand bidders should behave in simultaneous auctions of imperfect substitutes. In addition to informing buyer behavior, such research will help sellers better understand how their reputation impacts expected revenue in the presence of competition. Finally, this work will assist market operators in designing more effective auction mechanisms for simultaneous auction environments.