Avery (1998) has shown that a jump bid may be used to intimidate one's opponents and serves as a correlating device among bidders.
Borgers and Dustmann (2005), in analyzing the United Kingdom's sale of licenses for third-generation mobile telephone services, found that, although the majority of bids in the auction were the lowest admissible bids, there were a significant number of jump bids. Haile and Tamer (2003) also documented jump bidding in a regular English auction and reported that the gap between first-and second-highest bids is usually above the minimum bid increment allowed.
Under the suggested equilibrium, jump bids favor the bidders.
The authors observed jump bids but concluded that their influence is only on speed and not on final prices or allocation.
financial bidder will emerge and make a jump bid, stacking the deck in
as strategic buyers, should be willing to make a jump bid provided that
asymmetries that would be obstacles to a financial jump bid.
Media buyer David Bagley, who was associated with the Jump bid
, wanted to know more details about programming before deciding to place business.
Stuart Janczak also had a satisfactory introduction to the boards, recording 8.05 for 60 metres and 25.90 in the 200 as a solid base for his long jump bid
at this weekend's Midland Counties campionships.
First, we consider two models in which the propensity to jump bid occurs at least partially in response to the public goods nature of the seller's revenue.
Figure 1 displays the propensity of individual bidders to jump bid in the 1999 church auction, the 2000 church auction, and the 2001 school auction.
For each night of auctions (i.e., Church 1999, Church 2000, and School) we conducted two estimations: a probit analysis of the incidence of a jump bid of any magnitude, and a tobit regression on the magnitude of the bid increment.