- A-Z
- Jena Economics Rese...
- Volume 8
- Auctions and Leaks:...
Auctions and Leaks:
A Theoretical and Experimental Investigation
- Autor(in)
- Erschienen
- 10. November 2014
- Nummer des Discussion-Papers
-
2014-027
- Schlagwort(e)
-
auctions
collusion
espionage
laboratory experiments
- Zusammenfsg.
-
We study first- and second-price private value auctions with sequential bidding where second movers may discover the first movers bids. There is a unique equilibrium in the first-price auction and multiple equilibria in the second-price auction. Consequently, comparative statics across price rules are equivocal. We experimentally find that in the first-price auction, leaks benefit second movers but harm first movers and sellers. Low to medium probabilities of leak eliminate the usual revenue dominance of first-price over second-price auctions. With a high probability of a leak, second-price auctions generate higher revenue.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- C72 - Noncooperative Games ; C91 - Laboratory, Individual Behavior ; D44 - Auctions
- URN
- urn:nbn:de:urmel-498cac5e-3f53-43eb-b2e4-56feb223a9ac4-00239118-18