Framed
Demand Reduction In A Multi-Unit Auction: Evidence From A Sportscard Field Experiment: Reply
by
Richard Engelbrecht-Wiggans, John List, and David Reiley
My coauthors and I reply to the comments of Daniel Levin on our paper “Demand Reduction in Multiunit Auctions: Evidence from a Sportscard Field Experiment.” In his comment, Levin presents new theory and proposes a new equilibrium to explain annomalies reported in our earlier sportscard auction, such as higher first-unit bids under the uniform-price institution. We evaluate his theory and equilibrium in the context of both uniform-price and Vickrey auctions and point out our concerns. Where possible, we attempt to test the predictions of his theory with our existing data.