Bidder Preferences among Auction Institutions¤ Radosveta Ivanova-Stenzely Humboldt University

This study examines bidder preferences between alternative auction institutions. In par-ticular we seek to experimentally characterize the degree to which bidders prefer an ascending auction over a sealed bid auction. We …nd very strong ceteris paribus preferences for the as-cending institution with bidders choosing it overwhelmingly often when entry prices for the two auctions are the same. When the entry prices of the two auctions di¤er, many subjects can be shown to be willing to pay far more to enter the ascending auction than is explainable by their risk attitudes when accounting for their expectations about the risk preferences of their opponents. JEL Codes: C91, D4