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A SIMULATED STUDY OF AN AUCTION MARKET
Author(s) -
Whan R.B.,
Richardson Robert A.
Publication year - 1969
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1969.tb00058.x
Subject(s) - variation (astronomy) , economics , econometrics , microeconomics , physics , astrophysics
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.