Topic:Bidding Behavior in Discriminatory Auctions: An Analysis of Swedish Treasury Auctions

Speaker: Pro. Mark Wu

Host: Pro. HAN Hongling

Time: 16:10-18:30 June 3rd, 2016 (Friday)

Venue: Room 802

Abstract:  This paper studies debt management policies, especially the reopening practice in Swedish Treasury auctions, and compares with policies in other countries. We then analyze bidder behavior from 1990--2012, during which the number of bidders declines. The number of bidders plays an important role in determining the winner's curse, and the empirical results presented suggest that the observed bidder behavior is consistent with responding to and adjusting for the winner's curse. Bidders shade and disperse their bids less, and demanded for a larger quantity when the number of bidders drops.