A SIMULATED STUDY OF AN AUCTION MARKET

A simulated model of an auction market is developed showing the relationship between the variation in valuations, the price variation and the number of independent bidders in the market. Average prices paid in a market with two or three bidders are less than average valuations. Average prices are progressively greater than average valuations as the number of bidders increases beyond four. Some applications of this model in the Australian wool market are discussed.


Subject(s):
Issue Date:
1969-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/23005
Published in:
Australian Journal of Agricultural Economics, Volume 13, Number 2
Page range:
91-100
Total Pages:
10




 Record created 2017-04-01, last modified 2017-04-04

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