The Role of the Bidding Process in Price Determination : Jump biddings in Sequential English Auctions

@inproceedings{Raviv2004TheRO,
  title={The Role of the Bidding Process in Price Determination : Jump biddings in Sequential English Auctions},
  author={Yaron Raviv},
  year={2004}
}
  • Yaron Raviv
  • Published 2004
I study the sequence of bidding in an open-outcry English auction to examine how the strategic bidding process affects price determination. I do this by studying the anomalous nature of “jump bidding” in data I have collected from a series of public auctions of used cars in New Jersey. Jump bidding occur when a new offer is submitted that is above the old offer plus the minimum bid increment permitted. I find that jump biddings are an empirical regularity in all items sold. The jumps are a… CONTINUE READING

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