Setting Parameters for a Dutch Auction

A Dutch auction, often referred to as a clock auction, is a descending-price auction. For more details on this type of auction, see the Handbook section on Dutch Auctions.

Parameters are configured in the right-hand panel: Parameters for Regime #1

Screen Capture: Configuration Screen for Dutch Auction
 

(Click here to open a window image)

Tick length: This allows the experimenter to set the speed at which the price decreases (in seconds).

Starting price: Here the experimenter price at which the auction will begin.

Price clock decrement: Here the experimenter specifies the amount by which the price will decrease with each tick in the auction.

Proxy bidding allowed: Checking this box will permit proxy bidding for each bidder.  When proxy bidding is permitted, bidders may specify a price they are willing to pay in the auction so they will continue to out-bid other bidders until they have reached their proxy limit.  In a dutch auction, the proxy will simply stop the clock as soon as the specified price is reached.

• Details: Clicking the details button will bring up the screen below which enables the experimenter to specify exactly those bidders who are allowed to use a proxy.

 Screen Capture: Proxy Bidding Configuration Screen

 

 

After setting these institution specific parameters, it is time to set up inducements by clicking on the Inducement tab.  For details click here.