Meeting Minutes - 14 January 2009

Today I presented an overview of the priorly discussed articles on Dutch auctions. The following articles were discussed:

• Van den Berg and Van der Klauw, 2008. A Structural Empirical Analysis of Dutch Flower Auctions
• Katok and Kwasnica, 2008. Time is money: The effect of clock speed on seller’s revenue in Dutch auctions
• Carare and Rothkopf, 2005. Slow Dutch Auctions

There was a discussion on what we can learn from the theoretic models as modeled in these articles when building a theoretic model for super fast auctions as in the DFA.

• It was noted that the DFA has sequential auctions, which means that the cost of returning to the auction exists but not at the level of an individual auction.
• It was noted that 'Competitive Arousal' as discussed in Katok and Kwasnica exists in a different form in super fast auctions, since it is unlikely that within an individual auction levels of arousal differ.
• It was agreed that 'competitive arousal' in fast auctions could very well be a function of time, possibly not linear per se but this could be a good first start for building a model. Futhermore, the issue of arousal for experience was discussed because bidders who have been trading for years might not be influence very much by emotions.

Peter