We offer experimental and theoretical evidence that large, sealed-bid, multi-unit common value auctions for assets with substantial price uncertainty may be improved through hybrids with a separate retail tranche or ‘public pool.' The auctions in our laboratory experiments incorporate initial...

We explore the role of capacity constraints in establishing efficient pricing in multi-unit common value auctions in a setting relevant to auction-based equity IPOs. The method of inquiry is experimental economics. We find that sufficiently large capacity constraints mitigate the overbidding...

This dissertation consists of two essays on the topic of bidding in multi-unit common value auction. Essay one examines the role of capacity constraint on the auction results and bidding behavior. We consider a general case where bidders are unconstrained, and a second setting where bidders are...