Auctions with Endogenous Price Ceiling:Theoretical and Experimental Results
This paper analyzes an auction mechanism that excludes overoptimistic bidders inspired by the rules of the procurement auctions adopted by several Japanese local governments. Our theoretical and experimental results suggest that the endogenous exclusion rule reduces the probability of suffering a monetary loss induced by winning the auction, and also mitigates the problem of the winnerfs curse in the laboratory. However, this protection comes at the price of a lower revenue for the seller.
Year of publication: |
2009-06
|
---|---|
Authors: | RLobert F. Vesztegy, Serizawa ; Akai, Kenju ; Saijo, Tatsuyoshi ; Serizawa, Shigehiro |
Institutions: | Institute of Social and Economic Research (ISER), Osaka University |
Saved in:
freely available
Saved in favorites
Similar items by person
-
An Experimental Study of Procurement Auctions with Endogenous Minimum Prices
Akai, Kenju, (2009)
-
Auctions for Public Construction with Corner-cutting
Akai, Kenju, (2009)
-
Auctions with endogenous price ceiling: Theoretical and experimental results
Veszteg, Robert F., (2009)
- More ...