We experimentally compare under-revelation of supply and demand across alternative variations of ascending and descending two-sided price clock auctions. We find that buyers reduce demand more when the price is ascending but sellers’ behavior is consistent across clock directions. As a result, the clock price rule has empirical effects on efficiency even though it is theoretically neutral.
Winn, A. M., Parente, M. L. and Porter, D. (2016), Seller Beware: Supply and Demand Reduction and Price Manipulation in Multiple-Unit Uniform Price Auctions. Southern Economic Journal, 82(3): 760–780. doi: 10.1002/soej.12086
Southern Economic Association