Informed entry in auctions

Diego Aycinena, Hernán Bejarano, Lucas Rentschler

Research output: Contribution to journalArticle

2 Citations (Scopus)

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.
Original languageEnglish (US)
Pages (from-to)175-205
Number of pages31
JournalInternational Journal of Game Theory
Volume47
Issue number1
DOIs
StatePublished - 2018

Fingerprint

auction
willingness to pay
Auctions
Costs
Exceed
participation
costs
Willingness-to-pay
Participation
Values
Participation costs

Cite this

Aycinena, Diego ; Bejarano, Hernán ; Rentschler, Lucas. / Informed entry in auctions. In: International Journal of Game Theory. 2018 ; Vol. 47, No. 1. pp. 175-205.
@article{21460a40d56f48b9827d77865bdbbbae,
title = "Informed entry in auctions",
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.",
author = "Diego Aycinena and Hern{\'a}n Bejarano and Lucas Rentschler",
year = "2018",
doi = "10.1007/s00182-017-0583-9",
language = "English (US)",
volume = "47",
pages = "175--205",
journal = "International Journal of Game Theory",
issn = "0020-7276",
number = "1",

}

Informed entry in auctions. / Aycinena, Diego; Bejarano, Hernán; Rentschler, Lucas.

In: International Journal of Game Theory, Vol. 47, No. 1, 2018, p. 175-205.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Informed entry in auctions

AU - Aycinena, Diego

AU - Bejarano, Hernán

AU - Rentschler, Lucas

PY - 2018

Y1 - 2018

N2 - 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.

AB - 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.

U2 - 10.1007/s00182-017-0583-9

DO - 10.1007/s00182-017-0583-9

M3 - Article

VL - 47

SP - 175

EP - 205

JO - International Journal of Game Theory

JF - International Journal of Game Theory

SN - 0020-7276

IS - 1

ER -