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More On Phantom Bidding

Author

Listed:
  • Parimal Kanti Bag

    (Univeristy of Liverpool, Liverpool UK)

  • Emim Murat Dinlersoz

    (University of Rochester, Rochester N.Y. USA)

  • Ruqu Wang

Abstract

A phantom bidding model is analyzed for a sale auction. The following questions are addressed: the effects of phantom bidding on overall social welfare and buyers' profits. It is shown that social welfare may increase or decrease as the auctioneer switches from the fixed reserve price policy to phantom bidding. The buyers' profits will increase whenever social welfare increases.

Suggested Citation

  • Parimal Kanti Bag & Emim Murat Dinlersoz & Ruqu Wang, 1998. "More On Phantom Bidding," Working Paper 976, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:976
    as

    Download full text from publisher

    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_976.pdf
    File Function: First version 1998
    Download Restriction: no
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    Other versions of this item:

    • Ruqu Wang & Emin Murat Dinlersoz & Parimal Kanti Bag, 2000. "More on phantom bidding," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 15(3), pages 701-707.

    Citations

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

    1. Takahiro Watanabe & Takehiko Yamato, 2008. "A choice of auction format in seller cheating: a signaling game analysis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(1), pages 57-80, July.
    2. Laurent Lamy, 2013. "“Upping the ante”: how to design efficient auctions with entry?," RAND Journal of Economics, RAND Corporation, vol. 44(2), pages 194-214, June.
    3. Gustavo Rodriguez, 2012. "Sequential auctions with imperfect quantity commitment," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(1), pages 143-173, January.
    4. Herzog, Dominic, 2014. "Shill Bidder's Behavior in a Second-Price Online Auction," Working papers 2014/03, Faculty of Business and Economics - University of Basel.
    5. Itai Sher, 2012. "Optimal shill bidding in the VCG mechanism," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 341-387, June.
    6. Kosmopoulou, Georgia & De Silva, Dakshina G., 2007. "The effect of shill bidding upon prices: Experimental evidence," International Journal of Industrial Organization, Elsevier, vol. 25(2), pages 291-313, April.
    7. Coatney, Kalyn & Harri, Ardian, 2015. "Auctioneer Versus a Dominant Bidder: Evidence from a Cattle Auction," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 207368, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Fixed/Flexible Reserve Price; English Auction; Phantom Bidding;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

    Statistics

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