Working Papers Home


2014 Working Papers
2013 Working Papers
2012 Working Papers
2011 Working Papers
2010 Working Papers
2009 Working Papers
2008 Working Papers
2007 Working Papers
2006 Working Papers
2005 Working Papers
2004 Working Papers
2003 Working Papers
2002 Working Papers
2001 Working Papers
2000 Working Papers


Search All Papers


JEL Classification


Past Working Papers (Prior to 2000)


Office of Research
Home Page



Information on
Submitting a Paper



 
 
"Bidding in Sequential Auctions: 'Catalogue' vs. 'Order of Sale' Effects"

George Deltas and Georgia Kosmopoulou

 

First Author :

George Deltas
Economics
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
Champaign, IL 61820
USA

deltas@uiuc.edu

http://www.staff.uiuc.edu/~deltas/


Second Author :

Georgia Kosmopoulou
University of Oklahoma

georgiak@ou.edu

 
 
Abstract :
 
This paper investigates bidding patterns in sequential auctions using data from a sale of rare books by a non-profit institution. The data has features of a field experiment: Lots were arranged in alphabetical order and the reserve was set non-strategically. Further, half the bids were placed by mail-in bidders for whom the auction was simultaneous in a temporal sense. The nature of the data allows us to distinguish between the effects induced by the sequential nature of the catalogue from those induced by the sequential nature of the sale. We estimate trends in the probability of sale, number of submitted bids, expected prices, and price variability separately for mail-in and floor bidders. We document the existence of distinct ‘catalogue’ effects on bidding trends and determine their causes. We demonstrate that these catalogue effects also influence floor bidder behavior. Taken together, our results show that (i) as the auction progresses, bidders become more aggressive in competing for some lots, but become disinterested in others, and (ii) bidding patterns in sequential auctions are a composite of ‘catalogue’ and ‘order of sale’ effects. The catalogue effects are of non-strategic nature, while the order-of –sale effects are possibly due to strategic behavior. Finally, we derive a theoretical model that is consistent with the empirical findings.
 
 
Manuscript Received : 2000
Manuscript Published : 2000
 
 
This abstract has been viewed 2375 times.