Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Social and Behavioral Sciences
Testing For Bid Affiliation In Repeated Second-Price Auctions With Posted Prices, Andreas Drichoutis, Rodolfo M. Nayga, Panagiotis Lazaridis, Beom Su Park
Testing For Bid Affiliation In Repeated Second-Price Auctions With Posted Prices, Andreas Drichoutis, Rodolfo M. Nayga, Panagiotis Lazaridis, Beom Su Park
Andreas Drichoutis
In repeated second-price experimental auctions, the winning bid is normally posted after each round. The posting of these winning prices after each round can result in bids submitted in later rounds to be affiliated with posted prices from earlier rounds. This paper introduces a formal test for bid affiliation in repeated second-price auctions with posted prices using a dynamic panel model. We then apply this test to formally check the presence of bid affiliation effects in three datasets used in previous studies.