Working Papers, Department of Economics, Lund University
No 2010:17:
Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study
Tommy Andersson ()
, Christer Andersson and Ola Andersson ()
Abstract: This paper considers the sealed bid and ascending auction,
which both identifies the minimum Walrasian equilibrium prices and where
truthful preference revelation constitutes an equilibrium. Even though
these auction formats share many theoretical properties, there are
behavioral aspects that are not easily captured. To explore this issue in
more detail, this paper experimentally investigates what role the design of
the auction format has for its outcome. The results suggest that the sealed
bid mechanism performs weakly better in all of investigated measures
(consistent reporting, efficiency etc.). In addition, we find that the
performance of the ascending auction is increasing over time, whereas the
sealed bid auction shows no such tendency.
Keywords: Auctions; Non-manipulability; Efficiency; Experiments; (follow links to similar papers)
JEL-Codes: C91; D44; (follow links to similar papers)
10 pages, December 17, 2010
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
WP10_17.pdf 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to David Edgerton ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
