A Structural Empirical Analysis of Dutch Flower Auctions
نویسندگان
چکیده
This paper provides a structural empirical analysis of Dutch auctions of houseplants at the flower auction in Aalsmeer, the Netherlands. The data set is unique for Dutch auctions in the sense that it includes observations of all losing bids in an interval adjacent to the winning bid. The size of this interval is determined by the speed of reaction of the auction participants. The data on losing bids are shown to be informative on the structural model determinants. The models are estimated using the Gibbs sampler with data augmentation. We take account of data limitations concerning the number of bidders. The estimation results are used to investigate whether actual reserve prices are optimal, and to determine the effects of reserve price changes. ∗VU University Amsterdam, IFAU-Uppsala, IFS London, IZA, and CEPR. †VU University Amsterdam, Tinbergen Institute and CEPR. Address: Department of Economics, Free University Amsterdam, De Boelelaan 1105, NL–1081 HV Amsterdam, The Netherlands.
منابع مشابه
If Winning isn't Everything, Why do they keep Score? A Structural Empirical Analysis of Dutch Flower Auctions
This paper provides a structural empirical analysis of Dutch auctions of houseplants at the flower auction in Aalsmeer, the Netherlands. The data set is unique for Dutch auctions in the sense that it includes observations of all losing bids in an interval adjacent to the winning bid. The size of this interval is determined by the speed of reaction of the auction participants, and as such these ...
متن کاملAn Empirical Model for Multi-Unit Sequential Dutch Auctions: the Dutch Flower Auctions Case
We develop an empirical model for multi-unit sequential Dutch auctions where multiple units of identical products are auctioned in sequential rounds by means of a fast-paced downward ticking auction clock. While most research on sequential auctions restricts attention to the sale of a single indivisible unit per round, we consider a more general case where potential bidders can acquire multiple...
متن کاملNew Entrants and the Role of Information Technology Case-Study: the Tele Flower Auction in the Netherlands
This article discusses the successful entrance of Tele Flower Auction (TFA) into the Dutch flower industry, enabled by Information Technology (IT). Indeed, the development and introduction of TFA is one of the initiatives in response to import restrictions by the traditional Dutch flower auctions. TFA is an electronic alternative that enables buyers to trade at a distance; this alternative is c...
متن کاملInformation Technology, Competition and Market Transformations: Re-engineering the Dutch Flower Auctions
The Dutch flower auctions have play a critical role in the world cut-flower industry by providing efficient centers for price determination and transactions of flowers between buyers and sellers. These auctions owned by by Dutch cut-flower grower cooperatives have traditionally used the "Dutch auction" as the mechanism for price determination. This paper considers how changing patterns of inter...
متن کاملCompetition in the Dutch Flower Markets
Disclaimer: This case was prepared as a basis for class discussion rather than to illustrate either effective or ineffective handling of administrative and business situations. It frames the case in terms of a fictional meeting between the CIOs and the Board of the Dutch Flower Auctions for purposes of developing a decision problem and an educational case illustrating competitive strategy and t...
متن کامل