14. Internet Auctions
Reading
- Rasmusen, Eric, "Strategic Implications of Uncertainty Over
One's Own
Private Value in Auctions," Indiana University, Dept. of Business
Economics
and Public Policy, October 31, 2001, http:
//php.indiana.edu/~erasmuse/papers/auction.pdf (November 19,
2001).
- Roth, Alvin E. & Axel Ockenfels (2000) ``Last Minute Bidding
And The
Rules For Ending Second-Price Auctions: Theory And Evidence From A
Natural
Experiment On The Internet,'' NBER Working Paper 7729, June 2000, http:
//www.nber.org/papers/w7729
.
Central Idea: There are various reasons
for delaying your bids till late in the auction.
Antithesis: You might as well bid early
as late in an auction.
Topics For Class Discussion
- Ebay vs. Amazon auction rules
- The common-value auction explanation for repeat bidding
- The value-discovery explanation for repeat bidding and sniping
- The avoiding-rivalry explanation for sniping
Important Terms.
Ebay and Amazon auctions.
Sniping.
Value discovery.
Additional Material
For Next Time
- Final exam. 5/2,Thursday, 12:30-2:30.
Return to the Thinking
Strategically Home Page at
http://pacioli.bus.indiana.edu/erasmuse/g570/g570.htm.
Send comments to Prof. Rasmusen.
March 23, 2002.