Abstract
Using data from an original survey of practicing auctioneers, this paper examines the effect of binding time constraints on the auctioneer’s selling strategy in an outcry auction. We present a time-allocation model in which the length of time allocated to the sale of an item must be traded off against its realized price. This is applied to (1) the relationship between time allocation and the ex ante value of an item; (2) the effect of the reported variation over time of the number of bidders present, on both the time allocation and the order in which items of differing value are presented for sale; and (3) the auctioneer’s use of various bidding processes, such as batching and selling by choice, from the perspective of the auctioneer’s time-revenue tradeoff. Our results corroborate and provide theoretical underpinning for observed auctioneer behavior.
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