Auction design: An experimental approach in assessing economic criteria in auction formats
This paper examines the four basic auction formats using experimental methodologies to ascertain the effects of auction design on the various economic criteria prescribed. Computer programs designed to embody basic attributes of each auction format are used in the experiments conducted. These served...
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| Main Authors: | , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2006
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/5992 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | This paper examines the four basic auction formats using experimental methodologies to ascertain the effects of auction design on the various economic criteria prescribed. Computer programs designed to embody basic attributes of each auction format are used in the experiments conducted. These served as means for the group to observe the decision-making behavior of participants and to compare economic results across auction formats. The results of this study depict certain deviations from auction theory literature and previous experiments of other papers. Main assertions from the experimental data show (1) significant departures of Vickrey experimental results from the established theory (2) a distinctive Dutch auction-induced bidding behavior, (3) bidder dropouts in English auctions (4) an erratic equilibrium-convergence pattern for English auction results and (5) the breakdown of the revenue equivalence theorem. |
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