Accession Number:

ADA063067

Title:

A Model for the Distribution of the Number of Bidders in an Auction,

Descriptive Note:

Corporate Author:

YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Personal Author(s):

• Engelbrecht-Wiggans,Richard

Report Date:

1978-09-11

Pagination or Media Count:

14.0

Abstract:

The distribution of the number of bidders in auctions with uncertain numbers is usually assumed to be Poisson. The observed distribution, for example in OCS Federal Offshore Oil Lease Sales, is apparently not Poisson. A simple model is presented showing that if the objects have different values and individuals tend to only bid on objects with high value, then the resulting distribution of the number of bidders will not be Poisson. The results of the model correspond closely to data observed in Federal Offshore Oil lease auctions and the model is simple enough so that it may be of practical use to an individual participating in such an auction. Author

Descriptors:

• *PROCUREMENT
• *GAME THEORY
• *ECONOMIC MODELS
• PROBABILITY DISTRIBUTION FUNCTIONS
• RANDOM VARIABLES
• EQUILIBRIUM(GENERAL)
• MATHEMATICAL PREDICTION
• APPROXIMATION(MATHEMATICS)

Subject Categories:

• Administration and Management
• Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE