Auctions Versus Bilateral Bargaining: Evidence from a Natural Experiment
10 Pages Posted: 4 Jan 2007
Date Written: December 2006
This paper uses data from a natural experiment to compare two institutions: a simple English auction and bilateral bargaining. It appears that bilateral bargaining may be more profitable for the seller. Results also suggest no correlation between bargaining skills and an ability to make profit at the auction.
Keywords: auction, bilateral bargaining, natural experiment, television show
JEL Classification: C93, D44, C78
Suggested Citation: Suggested Citation