Please use this identifier to cite or link to this item: https://doi.org/10.1007/s11002-007-9024-z
Title: Revenue implication of auction value in k-price sealed-bid auctions: An experimental study
Authors: Lim, W.S. 
Lee-Partridge, J.E.
Tan, S.J. 
Keywords: Auction value
Experimental design
Sealed-bid auction
Issue Date: 2008
Source: Lim, W.S., Lee-Partridge, J.E., Tan, S.J. (2008). Revenue implication of auction value in k-price sealed-bid auctions: An experimental study. Marketing Letters 19 (1) : 25-38. ScholarBank@NUS Repository. https://doi.org/10.1007/s11002-007-9024-z
Abstract: In this paper, we show that in a heterogeneous bidding community with predominantly risk-seeking bidders, third-price sealed-bid auctions yield higher revenue for the seller than first-price sealed-bid auctions when the auction value is low. Conversely, when the value of the auction is high, first-price sealed-bid auctions yield higher revenue for the seller than third-price sealed-bid auctions. Existing theoretical findings for a homogeneous group of risk-seeking individuals imply that third-price sealed-bid auctions should generate higher revenues for the seller than first-price sealed-bid auctions. Our results for low-value auctions agree but our results for high-value auctions do not agree with the existing findings. We discuss the implications of this discrepancy as a function of the shift in goal orientation from a win-focus to a value-focus as the value of the auction increases. © 2007 Springer Science+Business Media, LLC.
Source Title: Marketing Letters
URI: http://scholarbank.nus.edu.sg/handle/10635/43822
ISSN: 09230645
DOI: 10.1007/s11002-007-9024-z
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

Page view(s)

58
checked on Dec 10, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.