Setting Up Parameters for a First-Price Auction

A first-price sealed bid auction involves the simultaneous submission of a single bid by each bidder. The highest bidder wins the auction and pays the price they bid. For more details on this type of auction, see the Handbook section on First Price Auctions.

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

Screen Capture: Configuration Screen for First-Price Auction

(Click here to open a window image)

Period length: Here the experimenter specifies the length of each auction period (2 minutes by default).

 
Unit of divisibility for bids: Here the number by which every bid must be divisible is entered (select .01 to allow all possible bids).

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