Arbeitspapier
Declining Prices in the Sequential Dutch Flower Auction of Roses
According to basic models of sequential private value auctions of identical objects, consecutive prices are on average constant or rising. In empirical studies, prices are often found to decline. Several explanations have been put forward for this declining price anomaly. In this paper we analyze data on sequential Dutch auctions of roses from the largest flower auction in the world. We find that there is a substantial price decline and suggest that the presence of a buyer's option, whereby the winner of the first auction has the opportunity to buy the remaining units at the winning price, is a main determinant of the observed price decline. We advance on the empirical literature on sequential auctions by using formal panel data estimation techniques.
- Language
-
Englisch
- Bibliographic citation
-
Series: Tinbergen Institute Discussion Paper ; No. 99-074/3
- Classification
-
Wirtschaft
Auctions
- Subject
-
Sequential Auctions
Declining Prices
Buyer's Option
Auktion
Zierpflanze
Niederlande
- Event
-
Geistige Schöpfung
- (who)
-
van den Berg, Gerard J.
van Ours, Jan C.
Pradhan, Menno P.
- Event
-
Veröffentlichung
- (who)
-
Tinbergen Institute
- (where)
-
Amsterdam and Rotterdam
- (when)
-
1999
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- van den Berg, Gerard J.
- van Ours, Jan C.
- Pradhan, Menno P.
- Tinbergen Institute
Time of origin
- 1999
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