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Seller Beware: Supply and Demand Reduction and Price Manipulation in Multiple-Unit Uniform Price Auctions

2015; Wiley; Volume: 82; Issue: 3 Linguagem: Inglês

10.1002/soej.12086

2325-8012

Abel Winn, Michael L. Parente, David Porter,

Experimental Behavioral Economics Studies

We experimentally compare under-revelation of supply and demand across alternative variations of ascending and descending two-sided price clock auctions. We find that buyers reduce demand more when the price is ascending but sellers’ behavior is consistent across clock directions. As a result, the clock price rule has empirical effects on efficiency even though it is theoretically neutral.