The role of undisclosed reserves in English open outcry auctions

Stevenson, S. and Young, J. (2015) The role of undisclosed reserves in English open outcry auctions. Real Estate Economics, 43 (2). pp. 375-402. ISSN 1540-6229 doi: 10.1111/1540-6229.12072

Abstract/Summary

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 whilst 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.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/40904
Item Type	Article
Refereed	Yes
Divisions	Henley Business School > Real Estate and Planning
Publisher	American Real Estate and Urban Economics Association
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