Testing for bid affiliation in repeated second-price auctions with posted prices
Abstract
In repeated second-price experimental auctions, the winning bid is normally posted after each round. The posting of these winning prices after each round can result in bids submitted in later rounds to be affiliated with posted prices from earlier rounds. This paper introduces a formal test for bid affiliation in repeated second-price auctions with posted prices using a dynamic panel model. We then apply this test to formally check the presence of bid affiliation effects in three datasets used in previous studies.
Suggested Citation
Andreas Drichoutis, Rodolfo M. Nayga, Panagiotis Lazaridis, and Beom Su Park. "Testing for bid affiliation in repeated second-price auctions with posted prices" II workshop on Valuation methods in Agro-food and Environment Economics “Experimental auctions: Theoretical background and empirical applications”, Barcelona, 2-3 July.. Jul. 2009.
Available at: http://works.bepress.com/andreas_drichoutis/38
Download