An experimental investigation of entry cost effects in sealed-bid dollar auctions

Surajeet Chakravarty, Sudeep Ghosh

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

We experimentally study the effect of entry costs on bidding and entry behavior in common value auctions. We find, with entry costs, players bid lower in first price and higher in second price auctions, compared to no entry fee auctions.
Original languageEnglish
Pages (from-to)122-124
Number of pages3
JournalEconomics Letters
Volume111
Issue number2
DOIs
Publication statusPublished - 1 May 2011

Keywords

  • Common value auctions
  • Entry costs
  • Experiments

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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