An empirical comparison of three auction strategies for multiple products

This study investigates bidders' bidding strategies and the relative profitability of three auction strategies, one auction for the bundle, two simultaneous separate auctions, and two sequential separate auctions under a controlled environment. The results suggest that when there is high variat...

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Bibliographic Details
Published inInternational journal of business Vol. 18; no. 3; pp. 198 - 215
Main Author Shen, Yingtao
Format Journal Article
LanguageEnglish
Published Fresno Premier Publishing, Inc 22.06.2013
Subjects
Auctions
Bids
Comparative analysis
Cost control
Profitability
Studies
United States > US
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Summary:This study investigates bidders' bidding strategies and the relative profitability of three auction strategies, one auction for the bundle, two simultaneous separate auctions, and two sequential separate auctions under a controlled environment. The results suggest that when there is high variation and no asymmetry among product values, the three selling mechanisms are equally profitable. When there is high asymmetry but no variation among product values, one auction for the bundle is more profitable than two separate auctions when there are two bidders, but less profitable than when there are ten bidders. Generally, selling products simultaneously or sequentially generates the same revenue.
ISSN:1083-4346