Premium auctions revolutionize house sales, boosting revenues and competition!
The Amsterdam Auction is a way to sell houses that has been used for centuries and treats all bidders equally. It doesn't require detailed information about bidders' values. By offering a premium to encourage weaker bidders to compete, this auction format can lead to higher sales prices and increased revenues. In an experiment, it was found that weak bidders set higher prices for stronger rivals, resulting in more money being made overall.