Cartel Stability in Experimental First-Price Sealed-Bid and English auctions

Open Access
Authors
Publication date 07-2020
Journal International Journal of Industrial Organization
Article number 102642
Volume | Issue number 71
Number of pages 20
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
  • Faculty of Economics and Business (FEB)
Abstract Using laboratory experiments, we compare the stability of bidding rings in the first-price sealed-bid auction and the English auction in a heterogeneous-value setting. In both a re-matching condition and a fixed-matching condition, we observe that bidding rings are more stable in the English auction than in the first-price sealed-bid auction. In both conditions, the first-price sealed-bid auction dominates the English auction in terms of average revenue and the revenue spread. The English auction outperforms the first-price sealed-bid auction in terms of efficiency.
Document type Article
Language English
Related dataset Data for: Cartel stability in experimental auctions Cartel stability in experimental first-price and English auctions
Published at https://doi.org/10.1016/j.ijindorg.2020.102642
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