| Billions of auctions are conducted every year and the value of goods exchanged is constantly increasing. The body of auction literature suggests that there are possible differences in revenue between different types of auctions. However, research has not yet clearly demonstrated under which auction mechanism a seller yields more revenues. By comparing a first-price and a second-price sealed bid auction, this research investigates if there are differences in revenue between different auction formats. The impact of a disclosed reserve price is also examined closely. As a result, a field experiment with four different auction scenarios is designed and tested allowing participants to experience auctions in a real-life context. Consequently, the results of this analysis show differences in bids between the four scenarios. In addition, results show that participants have preferences for different auction mechanisms. |
