IDEAS home Printed from https://ideas.repec.org/a/ecm/emetrp/v72y2004i1p281-294.html
   My bibliography  Save this article

Notes and Comments the Amsterdam Auction

Author

Listed:
  • Jacob K. Goeree
  • Theo Offerman

Abstract

The Amsterdam auction has been used to sell real estate in the Dutch capital for centuries. By awarding a premium to the highest losing bidder, the Amsterdam auction favors weak bidders without having the implementation difficulties of Myerson's (1981) optimal auction. In a series of experiments, we compare the standard first-price and English auctions, the optimal auction, and two variants of the Amsterdam auction. With strongly asymmetric bidders, the second-price Amsterdam auction raises substantially more revenues than standard formats and only slightly less than the optimal auction. Copyright Econometric Society 2004.

Suggested Citation

  • Jacob K. Goeree & Theo Offerman, 2004. "Notes and Comments the Amsterdam Auction," Econometrica, Econometric Society, vol. 72(1), pages 281-294, January.
    • Handle: RePEc:ecm:emetrp:v:72:y:2004:i:1:p:281-294
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1468-0262.2004.00484.x
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peyman Khezr, 2018. "Why Sellers Avoid Auctions: Theory and Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 56(2), pages 163-182, February.
    2. Brunner, Christoph & Hu, Audrey & Oechssler, Jörg, 2014. "Premium auctions and risk preferences: An experimental study," Games and Economic Behavior, Elsevier, vol. 87(C), pages 467-484.
    3. Georganas, Sotiris & Kagel, John, 2011. "Asymmetric auctions with resale: An experimental study," Journal of Economic Theory, Elsevier, vol. 146(1), pages 359-371, January.
    4. Sander Onderstal, 2020. "Premium auctions in the field," Review of Economic Design, Springer;Society for Economic Design, vol. 24(1), pages 39-63, June.
    5. Peyman Khezr & Flavio Menezes, 2018. "Auctions with an asking price," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(4), pages 1329-1350, November.
    6. Bernard Lebrun, 2015. "Revenue-superior variants of the second-price auction," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 59(2), pages 245-275, June.
    7. Dejan Trifunović & Bojan Ristić, 2013. "Multi-Unit Auctions In The Procurement Of Electricity," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(197), pages 47-78, April – J.
    8. Hu, Audrey & Offerman, Theo & Zou, Liang, 2011. "Premium auctions and risk preferences," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2420-2439.
    9. Sosung Baik & Sung-Ha Hwang, 2021. "Auction design with ambiguity: Optimality of the first-price and all-pay auctions," Papers 2110.08563, arXiv.org.
    10. Shraman Banerjee & Swagata Bhattacharjee, 2023. "Virtue of Simplicity in Asymmetric Auctions," Working Papers 2023-01, Shiv Nadar University, Department of Economics.
    11. van den Berg, Vincent A.C. & Rouwendal, Jan, 2016. "Tender auctions with existing operators bidding," Economics of Transportation, Elsevier, vol. 6(C), pages 1-10.
    12. Bartling, Björn & Netzer, Nick, 2016. "An externality-robust auction: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 97(C), pages 186-204.
    13. Hu, Audrey & Offerman, Theo & Onderstal, Sander, 2011. "Fighting collusion in auctions: An experimental investigation," International Journal of Industrial Organization, Elsevier, vol. 29(1), pages 84-96, January.
    14. Lu, Jingfeng, 2012. "Optimal auctions with asymmetric financial externalities," Games and Economic Behavior, Elsevier, vol. 74(2), pages 561-575.
    15. Vincent van den Berg, 2013. "Over- and Under-Bidding in Tendering," Tinbergen Institute Discussion Papers 13-033/VIII, Tinbergen Institute.
    16. Vincent van den Berg, 2012. "Advantaged Bidders in Franchise Auctions," Tinbergen Institute Discussion Papers 12-117/VIII, Tinbergen Institute.
    17. Garratt, Rodney & Georganas, Sotiris, 2021. "Auctions with speculators: An experimental study," Games and Economic Behavior, Elsevier, vol. 128(C), pages 256-270.
    18. Yizhaq Minchuk & Aner Sela, 2020. "Contests with insurance," Review of Economic Design, Springer;Society for Economic Design, vol. 24(1), pages 1-22, June.
    19. Dejan Trifunovic, 2019. "Heuristic and Equilibrium Strategies in Premium Auctions," Proceedings of International Academic Conferences 9411761, International Institute of Social and Economic Sciences.
    20. Vasserman, Shoshana & Watt, Mitchell, 2021. "Risk aversion and auction design: Theoretical and empirical evidence," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    21. Lamy, Laurent, 2009. "The Shill Bidding Effect versus the Linkage Principle," Journal of Economic Theory, Elsevier, vol. 144(1), pages 390-413, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecm:emetrp:v:72:y:2004:i:1:p:281-294. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.