Published March 1993 | Version Submitted
Working Paper Open

A Note on Sequential Auctions

Abstract

This note provides an explanation for the 'declining-price anomaly' in sequential second price auctions. We illustrate how the average winning bids of risk neutral agents bidding for objects with valuations drawn from independent, identical distributions are lower in later auctions than in earlier auctions. When the objects are not identical we determine the optimal order in which they should be auctioned.

Additional Information

We are grateful to Anne Sholtz, Ruqu Wang and an anonymous referee for helpful comments. Both authors acknowledge financial support from SSHRC. We are responsible for any errors that remain. Published as Bernhardt, Dan, and David Scoones. "A note on sequential auctions." The American economic review 84, no. 3 (1994): 653-657.

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Identifiers

Eprint ID
80822
Resolver ID
CaltechAUTHORS:20170825-162510308

Funding

Social Sciences and Humanities Research Council (SSHRC)

Dates

Created
2017-08-28
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Updated
2019-10-03
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Caltech Custom Metadata

Caltech groups
Social Science Working Papers
Series Name
Social Science Working Paper
Series Volume or Issue Number
829