Sealed bid auctions attract more bidders and generate higher revenue.
The article compares sealed bid and open auctions using data from timber auctions. Sealed bid auctions attract more small bidders, shift allocation towards them, and can generate higher revenue. A model was proposed to explain these effects, which was calibrated using data parameters. The model successfully explained both qualitative and quantitative effects of auction format. The assessment of bidder competitiveness was provided, which is crucial for auction choice.