14. Internet Auctions
- Rasmusen, Eric, "Strategic Implications of Uncertainty Over
Private Value in Auctions," Indiana University, Dept. of Business
and Public Policy, October 31, 2001, http:
//php.indiana.edu/~erasmuse/papers/auction.pdf (November 19,
- Roth, Alvin E. & Axel Ockenfels (2000) ``Last Minute Bidding
Rules For Ending Second-Price Auctions: Theory And Evidence From A
Experiment On The Internet,'' NBER Working Paper 7729, June 2000, http:
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
Ebay and Amazon auctions.
For Next Time
- Final exam. 5/2,Thursday, 12:30-2:30.
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Strategically Home Page at
Send comments to Prof. Rasmusen.
March 23, 2002.