Item Details

Endogenous Reference Price Auctions for a Diverse Set of Commodities: An Experimental Analysis

Holt, Charles
Format
Research Paper
Author
Holt, Charles
Contributor
Holt, Charles
Abstract
Endogenous Reference Price Auctions for a Diverse Set of Commodities: An Experimental Analysis Olivier Armantier and Charles A. Holt Abstract This paper uses laboratory techniques to evaluate procedures for selling a heterogeneous set of commodities in auctions designed to create thick markets. “Reference prices,” based on commodity characteristics and other available information, are used to normalize bids before they are ranked. The complex, multi-dimensional nature of the commodity space creates a rich strategic environment that is well suited for testing with financially motivated human subjects. When reference prices are based on noisy value estimates, the auction performance is substantially improved by using submitted bids to adjust reference prices before the auction is cleared.
Language
English
Published
University of Virginia, 2017
Published Date
2017
Collection
Libra Open Repository
Logo for Creative Commons Attribution LicenseCreative Commons Attribution License

Availability

Access Online