Journal
EUROPEAN REVIEW OF AGRICULTURAL ECONOMICS
Volume 36, Issue 2, Pages 133-149Publisher
OXFORD UNIV PRESS
DOI: 10.1093/erae/jbp013
Keywords
field substitutes; full bidding approach; outside options; Vickrey auctions; C91; D44
Categories
Funding
- The Research Council of Norway [178300/110]
Ask authors/readers for more resources
This article investigates the weakly dominant strategy in Vickrey auctions when substitutes are available in the market. We find that it is optimal for the consumers to shade their bids so that they obtain at least the same surplus from the auction as they would from the market. For products that would be bought in the market, the optimal bid is the market price. For other products, the optimal bid is below the market price. Furthermore, the full bidding approach is an incentive-compatible method for eliciting consumers' valuations of product attributes if the products in the auction have the same field substitutes.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available