Cartel stability in experimental first-price sealed-bid and English auctions

B-Tier
Journal: International Journal of Industrial Organization
Year: 2020
Volume: 71
Issue: C

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Using laboratory experiments, we compare the stability of bidding rings in the first-price sealed-bid auction and the English auction in a heterogeneous-value setting. In both a re-matching condition and a fixed-matching condition, we observe that bidding rings are more stable in the English auction than in the first-price sealed-bid auction. In both conditions, the first-price sealed-bid auction dominates the English auction in terms of average revenue and the revenue spread. The English auction outperforms the first-price sealed-bid auction in terms of efficiency.

Technical Details

RePEc Handle
repec:eee:indorg:v:71:y:2020:i:c:s0167718720300655
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-26