Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5067229 | European Economic Review | 2009 | 17 Pages |
Abstract
We find that bidders do respond to outside options and to variations of common knowledge about competitors' outside options. However, overbidding in first-price auctions is significantly higher with outside options than without. First-price auctions yield more revenue than second-price auctions. This revenue-premium is significantly higher with outside options. In second-price auctions the introduction of outside options has only a small effect.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Oliver Kirchkamp, Eva Poen, J. Philipp ReiÃ,