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International Journal of Game Theory

, Volume 47, Issue 1, pp 175–205 | Cite as

Informed entry in auctions

  • Diego Aycinena
  • Hernán Bejarano
  • Lucas RentschlerEmail author
Original Paper

Abstract

We examine entry decisions in first-price and English clock auctions with participation costs. Potential bidders observe their value and report maximum willingness to pay (WTP) to participate. Entry occurs if revealed WTP (weakly) exceeds the randomly drawn participation cost. We find no difference in WTP between auction formats, although males have a higher WTP for first-price auctions. WTP is decreasing in the number of potential bidders, but this reduction is less than predicted and small in magnitude.

Keywords

Auctions Endogenous entry Experiments Bidding 

JEL Classification

C72 C90 D44 D80 

Supplementary material

182_2017_583_MOESM1_ESM.tex (44 kb)
Supplementary material 1 (tex 44 KB)

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Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.Facultad de EconomíaUniversidad del RosarioBogotáColombia
  2. 2.Economic Science InstituteChapman UniversityOrangeUSA
  3. 3.Economics DepartmentCentro de Investigación y Docencia EconómicasMexicoMexico
  4. 4.Department of Economics and FinanceUtah State UniversityLoganUSA

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