The Impact of the Irrelevant: Temporary Buy-Options and Bidding Behavior in Auctions
With a laboratory experiment, ssg1 inner barrel length we study the impact of buy-options and the corresponding buy-price on revenues and bidding behavior in (online) proxy-auctions with independent private valuations.We show that temporary buy-options may reduce revenues for two reasons: At low buy-prices, the application of the buy-option avoids