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We investigate the effect of overreaction in the fine art market. Using a unique sample of auction prices of modern …) auction pricing estimate. Based on the overreaction hypothesis, we predict that overvalued (undervalued) prints generate a …
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Auctions with endogenous rationing have been introduced to stimulate competition. Such (procurement) auctions reduce the volume put out to tender when competition is low. This paper finds a strong negative effect of endogenous rationing on participation when bid-preparation is costly,...
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of the higher type. We then study an auction platform that matches each seller to two agents, and show that the optimal …
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