TY - JOUR
T1 - Competition and cooperation in divisible good auctions
T2 - An experimental examination
AU - Sade, Orly
AU - Schnitzlein, Charles
AU - Zender, Jaime F.
PY - 2006/1/1
Y1 - 2006/1/1
N2 - An experimental approach is used to examine the performance of three different multiunit auction designs: discriminatory, uniform-price with fixed supply, and uniform-price with endogenous supply. We find the actual strategies to be inconsistent with theoretically identified equilibrium strategies. The discriminatory auction is found to be more susceptible to collusion than either uniform-price auction and so, contrary to theoretical predictions and previous experimental results, it generates the lowest average revenue. Consistent with theoretical predictions, the actual bid schedules are more elastic with reducible supply or discriminatory pricing than in the uniform-price auction with fixed supply.
AB - An experimental approach is used to examine the performance of three different multiunit auction designs: discriminatory, uniform-price with fixed supply, and uniform-price with endogenous supply. We find the actual strategies to be inconsistent with theoretically identified equilibrium strategies. The discriminatory auction is found to be more susceptible to collusion than either uniform-price auction and so, contrary to theoretical predictions and previous experimental results, it generates the lowest average revenue. Consistent with theoretical predictions, the actual bid schedules are more elastic with reducible supply or discriminatory pricing than in the uniform-price auction with fixed supply.
UR - http://www.scopus.com/inward/record.url?scp=29344458576&partnerID=8YFLogxK
U2 - 10.1093/rfs/hhj005
DO - 10.1093/rfs/hhj005
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AN - SCOPUS:29344458576
SN - 0893-9454
VL - 19
SP - 195
EP - 235
JO - Review of Financial Studies
JF - Review of Financial Studies
IS - 1
ER -
