Revolutionizing Auctions: Maximizing Efficiency with Jump Bids and Cancelation Rights
The article explores how to make auctions more efficient by considering factors like sellers' uncertainty and the ability to change prices. They find that using jump bids and cancelation rights in English auctions can lead to the best outcomes in large settings. Shill bidding and cancelation rights in second price auctions are not as effective. The research offers new insights on auction strategies and their impact on outcomes.