Uncertainty and Auction Outcome: Evidence from Used Car Actions

26 Pages Posted: 6 Jun 2006

See all articles by Yaron Raviv

Yaron Raviv

Claremont McKenna College - Robert Day School of Economics and Finance

Date Written: April 15, 2006

Abstract

I study the sequence of bidding in an open-outcry English auction to examine how uncertainty affects auction outcomes. I do this by analyzing a data set collected from a series of public auctions of used cars in New Jersey. I conjecture that the uncertainty is related to the auction's progress and demonstrate that, empirically, an increase in the uncertainty is associated with an increase in the number of rounds required to sell an object and with a reduction in the ratio between the selling price and the presale estimate.

Keywords: Auction

JEL Classification: D44

Suggested Citation

Raviv, Yaron, Uncertainty and Auction Outcome: Evidence from Used Car Actions (April 15, 2006). Available at SSRN: https://ssrn.com/abstract=905584 or http://dx.doi.org/10.2139/ssrn.905584

Yaron Raviv (Contact Author)

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States
909-607-7305 (Phone)

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