Number of Bidders and the Winner’s Curse
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Abstract
Within an affiliated value auction setting, we study the relationship between the number of bidders and the winner’s curse in terms of its frequency of occurrence and its expected harm. From a design perspective, we find that both the number of bidders and the level of affiliation are instrumental when choosing an auction format and whether to encourage or discourage bidder participation.
References
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Articles in the same Issue
- Teacher Turnover, Composition and Qualifications in the Year-Round School Setting
- Self–Employment, Wealth and Start–up Costs: Evidence from a Financial Crisis
- Local Information, Income Segregation, and Geographic Mobility
- Leadership in Tax Competition with Fiscal Equalization Transfers
- Measuring the Deterrent Effect of European Cartel Law Enforcement
- Widowhood and Retirement Timing: Evidence from the Health and Retirement Study
- Guaranteed Nonlabor Income and Labor Supply: The Effect of the Alaska Permanent Fund Dividend
- Do State Sales Taxes Crowd Out Local Option Sales Taxes?
- Social Network Structure and Risk Sharing in Villages
- Tele-Communications 2.0: The Age of the Internet
- Number of Bidders and the Winner’s Curse
