auctions during the period 1992-99. Average underpricing amounts to 0.041% of face value. Theory suggests that underpricing may … behind bidder behaviour and underpricing is the volatility of bond returns. Since there is no evidence that bidders are risk …

underpricing. We make a realistic modification to the theory by allowing discrete prices, quantities and bids. We show that … underpricing can be made arbitrarily small by choosing a sufficiently small price tick size and a sufficiently large quantity …

Many bidders enter the Government of Canada securities auctions with short or long pre-auction inventory. We find that … bidding strategies and auction performance vary with pre-auction ownership structure. Short and long bidders bid higher … average prices and demand larger quantities than do bidders with neutral pre-auction inventory. The effects of pre-auction …

examines the extent to which the auction mechanisms are responsible for underpricing. Empirically, I find that even for the … equilibrium level of underpricing in an individual auction can be predicted from the summary statistics released by the Treasury … after each auction. Empirical results show that the magnitude of underpricing in the auctions, and the cross …

decisions. The structural estimation suggests that strategic voting saves up to 30% of the value at stake in a proposal compared …

bonds that are exchanged during the auction. We also document a V-shaped pattern in underpricing during the days surrounding … auction, the extent to which they are underpriced increases, with the smallest underpricing coming on the day of the auction. … analysis, we show that the current auction design may not result in the fair bond price and suggest modifications to the …

in Seattle in August 2000. We discuss the strong connections between auction theory and 'standard' economic theory, and … argue that auction-theoretic tools and intuitions can provide useful argument and insights in a broad range of mainstream …