The objects for sale in most auctions possess both private and common value elements. This salient feature has not yet been incorporated into a strategic analysis of equilibrium bidding behaviour. This paper reports such an analysis for a stylised model in which bidders receive a private value...

When goods are substitutes, the Vickrey outcome is in the core and yields competitive seller revenue. In contrast, with complements, the Vickrey outcome is efficient but not necessarily in the core and revenue can be low. Non-core outcomes may be perceived as unfair since there are bidders...

Auctions are generally not efficient when the object's expected value depends on private and common value information. We report a series of first-price auction experiments to measure the degree of inefficiency that occurs with financially motivated bidders. While some subjects fall prey to the...

The objects for sale in most auctions possess both private and common value elements. This salient feature has not yet been incorporated into a strategic analysis of equilibrium bidding behaviour. This paper reports such an analysis for a stylised model in which bidders receive a private value...

Multi-unit ascending auctions allow for equilibria in which bidders strategically reduce their demand and split the market at low prices. At the same time, they allow for preemptive bidding by incumbent bidders in a coordinated attempt to exclude entrants from the market. We consider an...

Auctions are increasingly being used to allocate emissions allowances (“permits”) for cap and trade and common-pool resource management programs. These auctions create thick markets that can provide important information about changes in current market conditions. This paper reports a...

When goods are substitutes, the Vickrey outcome is in the core and yields competitive seller revenue. In contrast, with complements, the Vickrey outcome is efficient but not necessarily in the core and revenue can be low. Non-core outcomes may be perceived as unfair since there are bidders...