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Auction Price Anomalies: Evidence from Wool Auctions in Australia *
Author(s) -
JONES CHRIS,
MENEZES FLAVIO,
VELLA FRANCIS
Publication year - 2004
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.2004.00188.x
Subject(s) - common value auction , anomaly (physics) , wool , economics , order (exchange) , econometrics , variation (astronomy) , microeconomics , geography , finance , physics , archaeology , astrophysics , condensed matter physics
Using detailed Australian wool auction data we test for further evidence of pricing anomalies at sequential auctions. We find that an anomaly frequently exists and order is frequently endogenously determined. Moreover, prices increase through some sales and decrease through others. We examine whether it is possible to explain the variation in the anomaly across sales and conclude that there is no systematic relationship between the direction of the price anomaly and the characteristics of the wool or the auction. We do, however, find evidence that an anomaly is more likely in longer sales.