Decision Sciences
4 years ago

Sealed bid auctions attract more bidders and generate higher revenue.

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RePEc: Research Papers in Economics
Comparing Open and Sealed Bid Auctions: Theory and Evidence from Timber Auctions
Jonathan Levin, Susan Athey, Enrique Seira

Paper Summary

The article compares sealed bid and open auctions using data from timber auctions. Sealed bid auctions attract more small bidders, leading to higher revenue. A model was proposed to explain these effects, which were confirmed by data analysis. The model also assessed bidder competitiveness, influencing auction choice.

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