An experimental study on sequential auctions with privately known capacities

• 成果类型: Article
• 署名作者: Corazzini, Luca; Galavotti, Stefano; Valbonesi, Paola
• 署名单位: Universita Ca Foscari Venezia; Universita Ca Foscari Venezia; Bocconi University; Universita degli Studi di Bari Aldo Moro; University of Padua; University of Padua; HSE University (National Research University Higher School of Economics)
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2019.06.005
• 发表日期: 2019
• 页码: 289-315
• 关键词: sequential auctions; capacity constraints; Belief updating

摘要

We experimentally study sequential procurement auctions where bidders' capacity constraints are private information. Our experiment involves two first-price auctions with a belief elicitation stage at the end of the first. Our results show that (i) observed behavior in the second auction is overall consistent with sequential rationality; (ii) first auction bids are decreasing in the capacity of the bidder, but (iii) stated beliefs are inconsistent with the actual play. Hence, subjects seem to be aware of the opportunity cost of early bids (which leads capacity constrained bidders to bid more cautiously than unconstrained ones); on the other hand, since they do not recognize the informative content of bids, the potential signaling cost associated with early bids does not come into play. (C) 2019 Elsevier Inc. All rights reserved.