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A comparison of Candle Auctions and Hard Close Auctions with Common Values

Author

Listed:
  • Sascha Füllbrunn

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

With this study, we contribute to the literature of auction design by presenting a new auction format: the Candle auction, a popular auction in the Middle Ages. Considering a common value framework, we theoretically and experimentally point out that the Candle auction, where bidding is allowed until a stochastic deadline, yields a better outcome to the seller than the Hard Close auction, the popular eBay online auction format.

Suggested Citation

  • Sascha Füllbrunn, 2009. "A comparison of Candle Auctions and Hard Close Auctions with Common Values," FEMM Working Papers 09019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:09019
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    File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_19.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    online auctions; market design; experimental economics; common value;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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