The Role of Undisclosed Reserves in English Open Outcry Auctions. (8th January 2015)

• Record Type: Journal Article
• Authors: Stevenson, Simon; Young, James
• Is Part Of: Real estate economics. Volume 43:Number 2(2015:Summer)
• Page Start: 375
• Page End: 402
• Publication Date: 2015-01-08
• Subjects: Real estate business -- United States -- Periodicals; Urban economics -- Periodicals; 333.33097
• DOI: 10.1111/1540-6229.12072
• Languages: English
• ISSNs: 1080-8620

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>This study considers the role that reserve prices may play in residential property auctions. In comparison to much of the previous empirical work, this study has access to undisclosed reserve prices from English auctions. Consistent with theoretical arguments in the auction literature, the results obtained illustrate that while higher reserve prices increase the revenue obtained for the seller, they also reduce the probability of sale. The findings also highlight the importance of auction participation, with the number of individual bidders and the number of bids significant in most specifications.</p> </abstract>