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Efficiency and Price in Simultaneous vs. Overlapping Competing Auctions

Siverbo, Henrik LU (2011) NEKM01 20111
Department of Economics
Abstract
This essay investigates differences between simultaneous and overlapping competing online auctions with respect to efficiency and price. Recent theoretical findings suggest that overlapping auctions are more efficient and result in a higher average price than simultaneous auctions. These predictions are tested using a data set consisting of 23 935 train ticket auctions submitted by Swedish train operator Statens Järnvägar to the eBay owned auction site Tradera. The results show that for price the data exhibit all expected characteristics and the prediction can thus be confirmed. For efficiency however, the prediction cannot be confirmed, on the contrary simultaneous auctions are found to be significantly more efficient than overlapping... (More)
This essay investigates differences between simultaneous and overlapping competing online auctions with respect to efficiency and price. Recent theoretical findings suggest that overlapping auctions are more efficient and result in a higher average price than simultaneous auctions. These predictions are tested using a data set consisting of 23 935 train ticket auctions submitted by Swedish train operator Statens Järnvägar to the eBay owned auction site Tradera. The results show that for price the data exhibit all expected characteristics and the prediction can thus be confirmed. For efficiency however, the prediction cannot be confirmed, on the contrary simultaneous auctions are found to be significantly more efficient than overlapping auctions. (Less)
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author
Siverbo, Henrik LU
supervisor
organization
course
NEKM01 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
Auction theory, competing online auctions, overlapping auctions, simultaneous auctions, cross-bidding
language
English
id
1940201
date added to LUP
2011-05-06 09:36:57
date last changed
2011-05-06 09:36:57
@misc{1940201,
  abstract     = {This essay investigates differences between simultaneous and overlapping competing online auctions with respect to efficiency and price. Recent theoretical findings suggest that overlapping auctions are more efficient and result in a higher average price than simultaneous auctions. These predictions are tested using a data set consisting of 23 935 train ticket auctions submitted by Swedish train operator Statens Järnvägar to the eBay owned auction site Tradera. The results show that for price the data exhibit all expected characteristics and the prediction can thus be confirmed. For efficiency however, the prediction cannot be confirmed, on the contrary simultaneous auctions are found to be significantly more efficient than overlapping auctions.},
  author       = {Siverbo, Henrik},
  keyword      = {Auction theory,competing online auctions,overlapping auctions,simultaneous auctions,cross-bidding},
  language     = {eng},
  note         = {Student Paper},
  title        = {Efficiency and Price in Simultaneous vs. Overlapping Competing Auctions},
  year         = {2011},
}