Seller Beware: Supply and Demand Reduction and Price Manipulation in Multiple-Unit Uniform Price Auctions
93 Pages Posted: 21 Feb 2015
Date Written: February 20, 2015
We experimentally compare under-revelation of supply and demand across alternative variations of ascending and descending two-sided price clock auctions. We find that buyers reduce demand more when the price is ascending but sellers’ behavior is consistent across clock directions. As a result, the clock price rule has empirical effects on efficiency even though it is theoretically neutral.
Keywords: Demand Reduction, Supply Reduction, Uniform Price Auctions, Clock Auctions
JEL Classification: D02, D44
Suggested Citation: Suggested Citation