David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Theory and Decision 43 (2):187-202 (1997)
In this paper we suggest a model of sequential auctions with endogenous participation where each bidder conjectures about the number of participants at each round. Then, after learning his value, each bidder decides whether or not to participate in the auction. In the calculation of his expected value, each bidder uses his conjectures about the number of participants for each possible subgroup. In equilibrium, the conjectured probability is compatible with the probability of staying in the auction. In our model, players face participation costs, bidders may buy as many objects as they wish and they are allowed to drop out at any round. Bidders can drop out at any time, but they cannot come back to the auction. In particular we can determine the number of participants and expected prices in equilibrium. We show that for any bidding strategy, there exists such a probability of staying in the auction. For the case of stochastically independent objects, we show that in equilibrium every bidder who decides to continue submits a bid that is equal to his value at each round. When objects are stochastically identical, we are able to show that expected prices are decreasing
|Keywords||Economics Social Sciences, Mathematical Methods Sequential Auctions Participation Costs Endogeneous Participation Price Decline Anomaly Costs|
No categories specified
(categorize this paper)
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Harold Houba, Dinard Laan & Dirk Veldhuizen (2011). Endogenous Entry in Lowest-Unique Sealed-Bid Auctions. Theory and Decision 71 (2):269-295.
Isabelle Brocas (2003). Endogenous Entry in Auctions with Negative Externalities. Theory and Decision 54 (2):125-149.
Alexei M. Marcoux (2003). Snipers, Stalkers, and Nibblers: Online Auction Business Ethics. [REVIEW] Journal of Business Ethics 46 (2):163 - 173.
Veronika Grimm (2000). Equilibrium Bidding Without the Independence Axiom: A Graphical Analysis. Theory and Decision 49 (4):361-374.
Hillel Steiner & Jonathan Wolff (2006). Disputed Land Claims: A Response to Weatherson and to Bou-Habib and Olsaretti. Analysis 66 (291):248–255.
Yilmaz Hatipkarasulu & James H. Gill (2004). Identification of Shareholder Ethics and Responsibilities in Online Reverse Auctions for Construction Projects. Science and Engineering Ethics 10 (2):283-288.
Frédéric Koessler, Anthony Ziegelmeyer & Marie-Hélène Broihanne (2003). The Favorite-Longshot Bias in Sequential Parimutuel Betting with Non-Expected Utility Players. Theory and Decision 54 (3):231-248.
Shyam Sunder, Amar Cheema, Peter T. L. Popkowski Leszczyc, Rajesh Bagchi, Richard P. Bagozzi, James C. Cox, Utpal M. Dholakia, Eric Greenleaf, Amit Pazgal, Michael H. Rothkopf, Michael Shen & Robert Zeithammer, Economics, Psychology, and Social Dynamics of Consumer Bidding in Auctions.
Edi Karni (1988). On the Equivalence Between Descending Bid Auctions and First Price Sealed Bid Auctions. Theory and Decision 25 (3):211-217.
Alex Nikitkov & Darlene Bay (2008). Online Auction Fraud: Ethical Perspective. [REVIEW] Journal of Business Ethics 79 (3):235 - 244.
Ondrej Majer (2002). Teoria zdarzeń sekwencyjnych. Filozofia Nauki 1.
Axel Cleeremans (2010). Endogenous Versus Exogenous Change: Change Detection, Self and Agency. Consciousness and Cognition 19 (1):198-214.
Maurice Berix (2012). YUTPA as a Design Tool for Public Participation. AI and Society 27 (1):165-172.
Jeremy Waldron (1998). Participation: The Right of Rights. Proceedings of the Aristotelian Society 98 (3):307–337.
Added to index2010-09-02
Total downloads3 ( #483,044 of 1,726,249 )
Recent downloads (6 months)1 ( #369,877 of 1,726,249 )
How can I increase my downloads?