Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25827
Year of Publication: 
2006
Series/Report no.: 
CESifo Working Paper No. 1782
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Multi-unit auctions are sometimes plagued by the so-called exposure problem. In this paper, we analyze a simple game called the chopstick auction' in which bidders are confronted with the exposure problem. We do so both in theory and in a laboratory experiment. In theory, the chopstick auction has an efficient equilibrium and is revenue equivalent with the second-price sealed-bid auction in which the exposure problem is not present. In the experiment, however, we find that the chopstick auction is less efficient than the second-price sealed-bid auction and that it yields more [the same] revenue if bidders are inexperienced [experienced].
JEL: 
C9
D44
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
203.57 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.