Absentee bidders and the declining price anomaly in wine auctions

  title={Absentee bidders and the declining price anomaly in wine auctions},
  author={Victor Ginsburgh},
The anomaly is concerned with the observation that in multiple-item auctions of identical objects, prices tend to decline over time. We show that in the case of wine auctions which have been analyzed frequently, the anomaly is likely to be caused by the fact that most bids are entered by absentees, who seem to use nonoptimal bidding strategies. Therefore, wine auctions can hardly be used to illustrate the standard multiple-object auction model. 
Highly Cited
This paper has 31 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.
23 Citations
12 References
Similar Papers


Publications referenced by this paper.
Showing 1-10 of 12 references

The declining price anomaly

  • P. McAfee, D. Vincent
  • Journal of Economic Theory
  • 1993
Highly Influential
5 Excerpts

How auctions work for wine and art

  • O. Ashenfelter
  • Journal of Economic Perspectives
  • 1989
Highly Influential
7 Excerpts

Experience and decision making: A comparison of students and businessmen in a simulated progressive auction

  • P. Burns
  • Research in Experimental Economics
  • 1985
Highly Influential
4 Excerpts

Auction theory and practice: Evidence from the market for jewellery, in V

  • O. Chanel, L.-A. Gérard-Varet, S. Vincent
  • Ginsburgh and P.M. Menger, eds., Economics of the…
  • 1996
2 Excerpts

Declining values and the afternoon effect: Evidence from art auctions, manuscript

  • A. Beggs
  • Graddy
  • 1996

Experimental examination of the declining price anomaly

  • C. Keser, M. Olson
  • Economics of the Arts. Selected Essays,
  • 1996
2 Excerpts

Price Anomalies at Auction: Evidence from the Market for Modern Prints, in V

  • J. E. Pesando, P.M
  • Ginsburgh and P.M. Menger, eds., Economics of the…
  • 1996

Sequential auctions with supply and demand uncertainty

  • A. Burguet
  • Sakovics
  • 1994

Systematic price differences between successive auctions are no anomaly

  • J. Black, D. de Meza
  • Journal of Economics and Management Strategy
  • 1993

Auctions. The Social Construction of Value

  • C. W. Smith
  • 1989
1 Excerpt

Similar Papers

Loading similar papers…