Comparing Open and Sealed Bid Auctions: Evidence from Timber Auctions

@article{Athey2008ComparingOA,
  title={Comparing Open and Sealed Bid Auctions: Evidence from Timber Auctions},
  author={Susan Athey and Jonathan D. Levin and Enrique Seira},
  journal={NBER Working Paper Series},
  year={2008}
}
We study entry and bidding patterns in sealed bid and open auctions with heterogeneous bidders. Using data from U.S. Forest Service timber auctions, we document a set of systematic effects of auction format: sealed bid auctions attract more small bidders, shift the allocation towards these bidders, and can also generate higher revenue. We show that a private value auction model with endogenous participation can account for these qualitative effects of auction format. We estimate the model's… Expand
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Estimating Auctions with Externalities: The Case of USFS Timber Auctions
  • Joseph Kuehn
  • Business, Economics
  • Review of Economics and Statistics
  • 2019
I introduce an empirical auction model where in addition to the private value that each bidder receives upon winning the auction, losing bidders incur a negative externality that depends on theExpand
Comparing Open and Sealed Bid Auctions: Evidence from Online Labor Markets
Online labor markets are web-based platforms that enable buyers to identify and contract for IT services with service providers using Buyer-Determined (BD) auctions. BD auctions in online laborExpand
Comparing Open and Sealed Bid Auctions: Evidence from Online Labor Markets
TLDR
The results suggest that the buyer surplus gained from the reduction in valuation uncertainty enabled by open bid auctions outweighs the buyer surpluses gain from the higher competition uncertainty in sealed bid auctions, which renders openbid auctions a superior auction design in online labor markets. Expand
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References

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Comparing Open and Sealed Bid Auctions: Theory and Evidence from Timber Auctions
We study entry and bidding patterns in sealed bid and open auctions with heterogeneous bidders. Using data from U.S. Forest Service timber auctions, we document a set of systematic effects of auctionExpand
SEALED‐BID VERSUS OPEN AUCTIONS: THE EVIDENCE
Data from U.S. Forest Service timber auctions are used to test Vickrey's original proposition that sealed-bid and open auctions yield equal revenue. Models for the high-bid in an auction areExpand
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Motivated by several interesting features of the highway mowing auction data from Texas Department of Transportation (TDoT), we propose a two-stage procurement auction model with endogenous entry andExpand
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We propose an estimation method to bound bidders’ marginal valuations in discriminatory auctions using individual bid-level data and apply the method to data from the Turkish Treasury auction market.Expand
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Within the independent private-values paradigm, we demonstrate nonparametric identification of Dutch and first-price, sealed-bid auction models when bidders are asymmetric. We also demonstrate that,Expand
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We study participation decisions and bidding behaviour in Michigan Department of Transportation procurement auctions. Patterns in the bidding data suggest that bidders’ participation behaviour has aExpand
Information and Competition in U.S. Forest Service Timber Auctions
This paper studies the bidding behavior of firms in U.S. Forest Service timber auctions in 1976--1990. When conducting timber auctions, the Forest Service publicly announces its estimates of theExpand
Auctions with Resale Markets: An Application to U.S. Forest Service Timber Sales
When bidders anticipate an opportunity for resale trade, the value of winning an auction is determined in part by the option values of buying and selling in the secondary market. One implication isExpand
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