The Declining Price Anomaly in Dutch Dutch Rose Auctions

The present paper contributes to the empirical literature on declining prices. Data on roses from the Aalsmeer Flower Auction (AFA) is used to analyze price movements in sequential auctions. The AFA is located in The Netherlands and uses a Dutch (descending first price) auction to sell products. Pro...

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Bibliographic Details
Published in:The American economic review 2001-09, Vol.91 (4), p.1055-1062
Main Authors: van den Berg, Gerard J., van Ours, Jan C., Pradhan, Menno P.
Format: Article
Language:English
Subjects:
Auctioneers
Auctions
Average prices
Bids
Economic models
Economic theory
Economics
Flowers
Flowers & plants
Game theory
Netherlands
Observational studies
Participant observation
Philosophical object
Plants
Price changes
Prices
Shorter Papers
Statistical analysis
Studies
United Kingdom
Valuation
Working papers
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Summary:The present paper contributes to the empirical literature on declining prices. Data on roses from the Aalsmeer Flower Auction (AFA) is used to analyze price movements in sequential auctions. The AFA is located in The Netherlands and uses a Dutch (descending first price) auction to sell products. Products are supplied as lots, which are defined as the total amount of a given product (or article) supplied by a given grower on a given day. A lot consists of a number of fully identical units (a unit is a fixed number of flowers, in our case a bucket of roses). The auctioning of the units of a given lot is sequential. Typically, there is more than one round per auction.
ISSN:0002-8282
1944-7981
DOI:10.1257/aer.91.4.1055