Shared Agents and Competition in Laboratory English Auctions

Posted: 1 Nov 2003

See all articles by Dale J. Menkhaus

Dale J. Menkhaus

University of Wyoming

Owen R. Phillips

University of Wyoming - College of Business - Department of Economics and Finance

Kalyn T. Coatney

U.S. Department of Agriculture - Competition Unit - Grain Inspection, Packers and Stockyards Administration

Multiple version iconThere are 2 versions of this paper

Abstract

At livestock auctions, the same purchasing agent can represent more than one processor. Repeated multiple-unit English auctions are created in a laboratory to measure the impact of shared agents on trade prices under alternative treatments with six, and as few as two, agents representing six principals. Treatments are constructed in which the agents either know or do not know quantity for sale, and in which there are progressively fewer agents bidding. Knowledge of quantity for sale can be anticompetitive. Evolution toward increased market concentration leads to consistent anticompetitive pricing, resulting in prices significantly lower than the predicted competitive equilibrium prices.

Suggested Citation

Menkhaus, Dale J. and Phillips, Owen R. and Coatney, Kalyn T., Shared Agents and Competition in Laboratory English Auctions. American Journal of Agricultural Economics, Vol. 85, No. 4, pp. 829-839, November 2003, Available at SSRN: https://ssrn.com/abstract=457769

Dale J. Menkhaus (Contact Author)

University of Wyoming ( email )

Box 3434 University Station
Department of Applied Agricultural Economics
Laramie, WY 82071
United States
307-766-5128 (Phone)
307-766-5544 (Fax)

Owen R. Phillips

University of Wyoming - College of Business - Department of Economics and Finance ( email )

P.O. Box 3985
Laramie, WY 82071-3985
United States
307-766-2195 (Phone)
307-766-5090 (Fax)

Kalyn T. Coatney

U.S. Department of Agriculture - Competition Unit - Grain Inspection, Packers and Stockyards Administration

1 Gateway Center
3950 Lewiston, Suite 200
Aurora, CO 80011
United States
303-375-4240 (Phone)
303-371-4609 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
548
PlumX Metrics