Information Effects in Uniform Price Multi-Unit Dutch Auctions.

We design a multi-unit descending-price (Dutch) auction mechanism that has applications for resource allocation and pricing problems. We address specific auction design choices by theoretically and experimentally determining optimal information disclosure along two dimensions. Bidders are either inf...

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Publicado en:Southern Economic Journal Vol. 83; no. 1; pp. 126 - 146
Autores principales: Buchanan, Joy, Gjerstad, Steven, Porter, David
Formato: Artículo
Publicado: Wiley-Blackwell Jul2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1002/soej.12145
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        atl: Information Effects in Uniform Price Multi-Unit Dutch Auctions.
      aug:
        au:
          Buchanan, Joy
          Gjerstad, Steven
          Porter, David
        affil:
          George Mason University, Interdisciplinary Center for Economic Science, 4400 University Drive, Fairfax, VA 22030, USA
          Chapman University, Economic Science Institute, One University Drive, Orange, CA 92866, USA
      su:
        Commercial law
        Auctions
        Sales
        Bidders
        Bid price
        Bidding strategies
      sug:
        subj:
          Commercial law
          Auctions
          Sales
          Bidders
          Bid price
          Bidding strategies
      keyword:
        C9
        D02
        D44
        C9
        D02
        D44
      ab: We design a multi-unit descending-price (Dutch) auction mechanism that has applications for resource allocation and pricing problems. We address specific auction design choices by theoretically and experimentally determining optimal information disclosure along two dimensions. Bidders are either informed of the number of bidders in the auction, or know that it is one of two possible sizes; they also either know the number of units remaining for sale or are unaware of how many units have been taken by other bidders. We find that revealing group size decreases bids, and therefore revenue, if units remaining are not shown. When group size is unknown the price also falls if the number of units remaining is revealed. The most efficient and largest revenue outcome occurs when bidders are not provided information on either group size or units remaining. These laboratory results conform to some directional predictions from our theory, although overbidding is common.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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