Auction Mechanisms in the Field

The five mechanisms from the experimental lab that we are currently testing in the field are:

All-Pay Auction
Bidders submit one bid in a sealed envelope. The highest bidder wins the prize basket. The auction is “all-pay” –all bidders are asked to make a donation in the amount of their bids, regardless of whether they win or lose.

Bucket Auction
All bidders are given chips worth $5 each. Bidders sit in a circle and a bucket is passed from bidder to bidder. Each bidder places one chip in the bucket each time it comes to him or her. Bidders who decide to pass the bucket without adding a chip are out of the auction. Bidders are asked to donate $5 for each chip they add to the bucket, regardless of whether they win or lose. The auction winner is the person who puts the last chip in the bucket.

Hybrid Auction
All participants interested in placing a bid on the prize basket must first donate $10 as an entry fee. This $10 donation also buys a 50-50-lottery ticket for a cash prize separate from the prize basket. To win the prize basket, lottery entrants participate in an English auction, see below.

English Auction
The auctioneer starts the auction by announcing the opening bid and accepts increasing bids. Bidders raise their bidding numbers to bid on the prize basket at the price called by the auctioneer. The highest bidder wins the prize basket and donates the amount of his or her bid.

Raffle
Each raffle ticket costs ten dollars. The winning ticket for the prize basket is selected randomly.