Davis, Andrew M.; Katok, Elena; Kwasnica, Anthony M. - In: Management Science 57 (2011) 1, pp. 177-192
We investigate how auctioneers set reserve prices in auctions. A well-established theoretical result, assuming risk neutrality of the seller, is that the optimal reserve price should not depend on the number of participating bidders. In a set of controlled laboratory experiments, we find that...