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Seller Beware: Supply and Demand Reduction and Price Manipulation in Multiple-Unit Uniform Price Auctions
Journal article   Open access   Peer reviewed

Seller Beware: Supply and Demand Reduction and Price Manipulation in Multiple-Unit Uniform Price Auctions

Abel M. Winn, Michael L. Parente and David Porter
Southern economic journal, Vol.82(3), pp.760-780
01/01/2016

Abstract

Business & Economics Economics Social Sciences
We experimentally compare under-revelation of supply and demand across alternative variations of ascending and descending two-sided price clock auctions. We find that buyers reduce demand more when the price is ascending but sellers' behavior is consistent across clock directions. As a result, the clock price rule has empirical effects on efficiency even though it is theoretically neutral.
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https://doi.org/10.1002/soej.12086View
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