In this note, we identify two errors in Greenleaf, Rao, and Sinha's (1993) analysis of negotiation of guarantees in auctions. This note provides a high-level but self-contained summary of the revised results. We find that, in contrast with the earlier claim, guaranteed auctions lead to greater...

The multimillion dollar price guarantees that an auction house can offer for paintings have already had a large impact on auction house profits, and place new demands on the auctioneer's decision making and negotiating skills. Yet auctioneers have not been studied as independent entities and...

Most auction sellers consign property to auction houses rather than holding the auction themselves. In addition to charging sellers a commission on property that sells in the auction, many auction houses also specify buy-in penalties in auction contracts. This is an amount the seller must pay...