Abstract
Dynamic clock auctions with drop-out information typically yield outcomes closer to equilibrium predictions than do comparable sealed-bid auctions. However, clock auctions require congregating bidders for a fixed time interval, which has limited field applicability and introduces inefficiencies of its own given the time cost of congregating bidders. In this experiment we explore the effects of removing these inefficiencies through survival auctions—a multi-round sealed-bid auction which is theoretically isomorphic to the dynamic clock auction with drop-out information.
Similar content being viewed by others
References
Ausubel L.M. (2004): An efficient ascending-bid auction for multiple objects. Am Econ Rev 94, 1452–1475
Cramton P. (1997): The FCC spectrum auctions: an early assessment. J Econ Manage Strategy 6, 431–495
Kagel J.H., Harstad R.M., Levin D. (1987): Information impact and allocation rules in auctions with affiliated private values: a laboratory study. Econ 55, 1275–1304
Kagel, J.H., Kinross, S., Levin, D.: Implementing efficient multi-object auction institutions: an experimental study of the performance of boundedly rational agents. OSU Working Paper (2003)
Kagel J.H., Levin D. (1993): Independent-private values auctions: bidder behavior in first-, second- and third-price auctions with varying numbers of bidders. Econ J 103, 868–879
Kagel J.H., Levin D. (2001): Behavior in multi-unit demand auctions: experiments with uniform price and dynamic Vickrey auctions. Econ 69, 413–454
Kagel J.H. Levin D. (2005): Multi-unit demand auctions with synergies: some experimental results. Game Econ Behav 53, 170–207
Levin D., Kagel J.H., Richard J.-F. (1996): Revenue effects and information processing in English common value auctions. Am Econ Rev 86, 442–460
McAdams, D., Fujishima, Y., Shoham, Y.: Speeding up ascending-bid auctions. In: Proceedings of the international journal conference in artificial intelligence, pp. 554–559 (1999)
Milgrom P., Weber R. (1982): A theory of auctions and competitive bidding. Econ 50, 1082–1122
Nalebuff, B.J., Bulow, J.I.: Designing the PCS Auction. Comment to the FCC on Behalf of Bell Atlantic (1993)
Perry M., Wolfstetter E., Zamir S. (2000): A sealed-bid auction that matches the English auction. Games Econ Behav 33, 265–273
Rutstrom E.E. (1998): Homegrown values and incentive compatible auction design. Int J Game Theory 27, 427–441
Author information
Authors and Affiliations
Corresponding author
Additional information
Kagel’s research was partially supported by National Science Foundation Grants No. 0136925 and 0136928. Any opinions, findings, and conclusions or recommendations in this material are those of the authors and do not necessarily reflect the views of the National Science Foundation. We thank the associate editor, an anonymous referee, seminar participants at Purdue University, especially Tim Cason, participants at International Industrial Organization April 2004 Conference, the ESA June 2003 meetings, and our discussant, Tim Salmon, for valuable comments. Kirill Chernomaz provided valuable research assistance. The usual caveat applies.
Rights and permissions
About this article
Cite this article
Kagel, J.H., Pevnitskaya, S. & Ye, L. Survival auctions. Economic Theory 33, 103–119 (2007). https://doi.org/10.1007/s00199-006-0156-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00199-006-0156-9