Sealed bid auctions with ambiguity:: Theory and experiments

• 成果类型: Article
• 署名作者: Chen, Yan; Katuscak, Peter; Ozdenoren, Emre
• 署名单位: University of Michigan System; University of Michigan; Czech Academy of Sciences; Economics Institute of the Czech Academy of Sciences; Charles University Prague; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2006.09.012
• 发表日期: 2007
• 页码: 513-535
• 关键词: sealed bid auctions; ambiguity; experiment

摘要

This study presents a laboratory experiment of the first and second price sealed bid auctions with independent private values, where the distribution of bidder valuations may be unknown. In our experimental setting, in first price auctions, bids are lower with the presence of ambiguity. This result is consistent with ambiguity loving in a model that allows for different ambiguity attitudes. We also find that the first price auction generates significantly higher revenue than the second price auction with and without ambiguity. (C) 2007 Elsevier Inc. All rights reserved.