Quotation Corazzini, Luca , Galavotti, Stefano, Sausgruber, Rupert, Valbonesi, Paola. 2017. Allotment in First-Price Auctions: An Experimental Investigation. Experimental Economics 20 (1), 70-99.


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Abstract

We experimentally study the effects of allotment—the division of an item into homogeneous units—in independent private value auctions. We compare a bundling first-price auction with two equivalent treatments where allotment is implemented: a two-unit discriminatory auction and two simultaneous single-unit first-price auctions. We find that allotment in the form of a discriminatory auction generates a loss of efficiency with respect to bundling. In the allotment treatments, we observe large and persistent bid spread, and the discriminatory auction is less efficient than simultaneous auctions. We provide a unified interpretation of our results that is based on both a non-equilibrium response to the coordination problem characterizing the simultaneous auction format and a general class of behavioral preferences that includes risk aversion, joy of winning and loser’s regret as specific cases.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Experimental Economics
Citation Index SSCI
WU-Journal-Rating new FIN-A, STRAT-A, VW-C, WH-A
Language English
Title Allotment in First-Price Auctions: An Experimental Investigation
Volume 20
Number 1
Year 2017
Page from 70
Page to 99
Reviewed? Y
URL https://link.springer.com/article/10.1007%2Fs10683-016-9476-1
DOI http://dx.doi.org/10.1007/s10683-016-9476-1
JEL H57, D44

Associations

People
Sausgruber, Rupert (Details)
External
Corazzini, Luca (Department of Law Science and History of Institutions, University of Messina, Italy)
Galavotti, Stefano (Department of Economics and Management, University of Padova, Italy)
Valbonesi, Paola (Department of Economics and Management, University of Padova, Italy)
Organization
Institute for Public Sector Economics IN (Details)
Department of Economics DP (Details)
Research Institute for International Taxation FI (Details)
Competence Center for Experimental Research WE (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5311 Public finance (Details)
5325 Political economics (Details)
5351 Public economy (Details)
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