The Chopstick Auction: A Study of the Exposure Problem in Multi-Unit Auctions

Arbeitspapier

Multi-unit auctions are sometimes plagued by the so-called exposure problem. In this paper, we analyze a simple game called the ‘chopstick auction' in which bidders are confronted with the exposure problem. We analyze the chopstick auction with incomplete information both in theory and in a laboratory experiment. In theory, the chopstick auction has an efficient equilibrium and is revenue equivalent with the second-price sealed-bid auction in which the exposure problem is not present. In the experiment, however, we find that the chopstick auction is slightly less efficient but yields far more revenue than the second-price sealed-bid auction.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Nota di Lavoro ; No. 10.2004

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Auctions
• Thema: Chopstick auction ; Exposure problem ; Laboratory experiment ; Second-price sealed-bid auction ; Auktionstheorie ; Test

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Onderstal, Sander ; Englmaier, Florian ; Guillen, Pablo ; Llorente, Loreto ; Sausgruber, Rupert
• Ereignis: Veröffentlichung
• (wer): Fondazione Eni Enrico Mattei (FEEM)
• (wo): Milano
• (wann): 2004

Weitere Informationen

• Handle: http://hdl.handle.net/10419/117889
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ