This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Microeconomics: Vol. 2 No. 3 (August 2010)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro Forthcoming Articles

Ascending Prices and Package Bidding: A Theoretical and Experimental Analysis

Article Citation

Kagel, John H., Yuanchuan Lien, and Paul Milgrom. 2010. "Ascending Prices and Package Bidding: A Theoretical and Experimental Analysis." American Economic Journal: Microeconomics, 2(3): 160-85.

DOI: 10.1257/mic.2.3.160

Abstract

We use theory and experiment to explore the performance of multi-round, price-guided, combinatorial auctions. We define efficiency-relevant and core-relevant packages and show that if bidders bid aggressively on these and losing bidders bid to their limits, then the auction leads to efficient or core allocations. We study the theoretically relevant behaviors and hypothesize that subjects will make only a few significant bids, and that certain simulations with auto-bidders will predict variations in performance across different environments. Testing the combinatorial clock auction (CCA) design, we find experimental support for these two hypotheses. We also compare the CCA to a simultaneous ascending auction. (JEL D44)

Article Full-Text Access

Full-text Article

Additional Materials

Online Appendix (900.03 KB)

Authors

Kagel, John H. (OH State U)
Lien, Yuanchuan (CA Institute of Technology)
Milgrom, Paul (Stanford U)

JEL Classifications

D44: Auctions

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Microeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Micro - All Issues

AEJ: Micro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us