experimental auction study experimental sealed-bid auction
Post on 22-Dec-2015
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![Page 1: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/1.jpg)
Experimental Auction Study
![Page 2: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/2.jpg)
EXPERIMENTAL Sealed-Bid Auction
![Page 3: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/3.jpg)
EX
AM
PLE
My Value
My Bid
HK$XXX
![Page 4: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/4.jpg)
EXPERIMENTAL Sealed-Bid Auction
![Page 5: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/5.jpg)
Questions?
![Page 6: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/6.jpg)
Ready?
![Page 7: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/7.jpg)
Go
![Page 8: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/8.jpg)
Price Level = $ 0.00
Please raise your hand if you’re active
Japanese Auction
![Page 9: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/9.jpg)
Price Level = $ 10.00
Please raise your hand if you’re active
Japanese Auction
![Page 10: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/10.jpg)
Price Level = $ 20.00
Please raise your hand if you’re active
Japanese Auction
![Page 11: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/11.jpg)
Price Level = $ 30.00
Please raise your hand if you’re active
Japanese Auction
![Page 12: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/12.jpg)
Japanese Auction
• At every price level you can raise your hard to indicate that you are active. Otherwise, you abandon the possibility of purchasing the item
• Auction ends when there is one or no active bidders remaining– If one is left, item is sold at that price– If none is left, item is sold at the previous price to a
randomly selected active bidder at that price level
![Page 13: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/13.jpg)
Questions?
![Page 14: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/14.jpg)
Ready?
![Page 15: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/15.jpg)
Go
![Page 16: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/16.jpg)
Price Level = $ 0.00
Please raise your hand if you’re active
Japanese Auction
![Page 17: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/17.jpg)
Price Level = $ 10.00
Please raise your hand if you’re active
Japanese Auction
![Page 18: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/18.jpg)
Price Level = $ 20.00
Please raise your hand if you’re active
Japanese Auction
![Page 19: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/19.jpg)
Price Level = $ 30.00
Please raise your hand if you’re active
Japanese Auction
![Page 20: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/20.jpg)
Price Level = $ 40.00
Please raise your hand if you’re active
Japanese Auction
![Page 21: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/21.jpg)
Price Level = $ 50.00
Please raise your hand if you’re active
Japanese Auction
![Page 22: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/22.jpg)
Price Level = $ 60.00
Please raise your hand if you’re active
Japanese Auction
![Page 23: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/23.jpg)
Price Level = $ 70.00
Please raise your hand if you’re active
Japanese Auction
![Page 24: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/24.jpg)
Price Level = $ 80.00
Please raise your hand if you’re active
Japanese Auction
![Page 25: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/25.jpg)
Price Level = $ 90.00
Please raise your hand if you’re active
Japanese Auction
![Page 26: Experimental Auction Study EXPERIMENTAL Sealed-Bid Auction](https://reader036.vdocuments.mx/reader036/viewer/2022062421/56649d815503460f94a65934/html5/thumbnails/26.jpg)
A Little Theory• In the Japanese auction,
exiting when price level exceeds your value is the optimal strategy
• This auction is theoretically efficient– Item sold to the bidder who values it most– No gain from secondary trading
• In the sealed-bid auction, people generally shade, and the buyer may not value the item most.
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Summary• Science comprises both a theoretical and an
experimental side• Best practice in engineering incorporates
wind-tunnel/test-bed – a natural role for laboratory experiments in business strategy and government policy.
• Smart market – which is smarter? Japanese or Sealed-bid?
• Pedagogical tool to complement existing approaches in the teaching of economics, business related disciplines, aid the social and behavioral sciences