Experiments on the Different Numbers of Bidders in Sequential Auctions
In a second-price sequentialauction with global and local bidders, we analyze the correct selling order ofgoods when the number of bidders in each leg of the auction is different withlaboratory experiments. Theoretically, selling the good with a large number ofbidders last should generate an (almost) efficient outcome but selling it firstshould result in an inefficient outcome with a positive probability. Ourexperimental results show that selling that good last generates a moreefficient outcome than selling it first. Hence, the experimental results showthat the selling order has to be taken into account while designing asequential auction.
Experimental economics,Lab experiments, Sequential auctions, Auction theory
C90, C91, C92, D44