Experiments on Auction Valuation and Endogenous Entry

27 Pages Posted: 28 Mar 2005

See all articles by Richard Engelbrecht-Wiggans

Richard Engelbrecht-Wiggans

University of Illinois at Urbana-Champaign - Department of Business Administration

Elena Katok

University of Texas at Dallas

Date Written: October 2004

Abstract

We present results of several experiments that deal with endogenous entry in auctions and auction valuation. One observation that is constant across all of the experiments we report is that laboratory subjects have a difficult time evaluating potential gains from auctions. Even after they are given some experience with particular auctions, the uncertainty inherent in the auctions (the probability of winning as well as the potential gains from winning) makes it difficult for subjects to compare different auction mechanisms. This highlights the need for new experimental procedures to be used for testing theories that involve endogenous auction entry in the laboratory.

Keywords: Auctions, entry, experiments

JEL Classification: C72, D83, D44, C91

Suggested Citation

Engelbrecht-Wiggans, Richard and Katok, Elena, Experiments on Auction Valuation and Endogenous Entry (October 2004). Available at SSRN: https://ssrn.com/abstract=673528 or http://dx.doi.org/10.2139/ssrn.673528

Richard Engelbrecht-Wiggans

University of Illinois at Urbana-Champaign - Department of Business Administration ( email )

1206 South Sixth Street
Champaign, IL 61820
United States
217-333-1028 (Phone)

Elena Katok (Contact Author)

University of Texas at Dallas ( email )

Jindal School of Management
800 W. Campbell Dr.
Richardson, TX 75080
United States

HOME PAGE: http://www.utdallas.edu/~ekatok/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
79
Abstract Views
792
rank
332,326
PlumX Metrics