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Decomposing the Afternoon Effect: An Empirical Investigation of Sequential Train Ticket Auctions

Andersson, Ola and Andersson, Tommy LU (2015) In Working Paper / Department of Economics, School of Economics and Management, Lund University
Abstract
The afternoon effect, i.e., that prices in a sequence of auctions with identical items are decreasing with the order in which the auctions are terminated, is a frequently observed phenomenon in empirical auction studies. Using an unsurpassed amount of data from sequential online train ticket auctions, we investigate two hitherto unexplored dimensions inherent in sequential auctions, namely, the timing of auction ends and the presentation order of the auctions in a sequence. We find that both these dimensions are important for price formation in sequential auctions, but even when controlling for them, a sizable afternoon effect remains.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
sequential auctions, afternoon effect, presentation order, timing
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
issue
28
pages
12 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
888998d1-3337-424d-8d74-77ccb1dce8b7 (old id 8051649)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2015_028.htm
date added to LUP
2015-10-05 11:53:24
date last changed
2016-04-16 08:51:05
@misc{888998d1-3337-424d-8d74-77ccb1dce8b7,
  abstract     = {The afternoon effect, i.e., that prices in a sequence of auctions with identical items are decreasing with the order in which the auctions are terminated, is a frequently observed phenomenon in empirical auction studies. Using an unsurpassed amount of data from sequential online train ticket auctions, we investigate two hitherto unexplored dimensions inherent in sequential auctions, namely, the timing of auction ends and the presentation order of the auctions in a sequence. We find that both these dimensions are important for price formation in sequential auctions, but even when controlling for them, a sizable afternoon effect remains.},
  author       = {Andersson, Ola and Andersson, Tommy},
  keyword      = {sequential auctions,afternoon effect,presentation order,timing},
  language     = {eng},
  note         = {Working Paper},
  number       = {28},
  pages        = {12},
  publisher    = {Department of Economics, Lund Universtiy},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {Decomposing the Afternoon Effect: An Empirical Investigation of Sequential Train Ticket Auctions},
  year         = {2015},
}