A comparison of Candle Auctions and Hard Close Auctions with Common Values

  • Sascha Füllbrunn
Schlagworte: online auctions, market design, experimental economics, common value, JEL: C73, C9, D44

Abstract

With this study, we contribute to the literature of auction design by presenting a new auction format: the Candle auction, a popular auction in the Middle Ages. Considering a common value framework, we theoretically and experimentally point out that the Candle auction, where bidding is allowed until a stochastic deadline, yields a better outcome to the seller than the Hard Close auction, the popular eBay online auction format.

Veröffentlicht
2018-09-05
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