EXPERIMENTAL COMPARISONS OF AUCTIONS UNDER SINGLE-UNIT AND MULTIUNIT DEMAND

An English clock auction and a sealed-bid auction with lowest accepted -bid pricing are studied in a controlled laboratory setting. Buyers bi d for either a single unit or two units of the good. The sealed-bid au ction generates more revenue than the English clock auction in both ca ses. The revenue from the English clock auction is lower in the two-un it demand environment than in the single-unit demand environment, due to strategic demand reduction on the part of bidders.