Does jump bidding increase sellers’ revenue? Theory and experiment

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 189
Issue: C
Pages: 84-110

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider an environment in which bidders decide whether to jump bids in a simple two-bidder ascending auction with independent private values. We compare two types of equilibria, one that involves jump bidding and another that does not. We show that the revenue in the jump bidding equilibrium dominates that in the no-jump equilibrium when bidders are risk averse. Isolating the revenue impact of jump bidding from that of overbidding, our experimental design allows us to demonstrate that sellers’ revenue increases due to jump bidding but only insignificantly so.

Technical Details

RePEc Handle
repec:eee:jeborg:v:189:y:2021:i:c:p:84-110
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25