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|Title:||Revenue implication of auction value in k-price sealed-bid auctions: An experimental study||Authors:||Lim, W.S.
|Issue Date:||2008||Citation:||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|
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