Some Evidence on Strategic Quantity Reduction
in Multiple Unit Auctions
Rafael Tenorio
DePaul University
Abstract
Theoretical models of multi-unit auctions predict that bidders have
a stronger incentive to reduce demand in uniform-price auctions than in
discriminatory auctions. I find support for this prediction using data
from foreign currency auctions in Zambia during the mid 1980's.
Key words: multi-unit auctions, quantity strategies, foreign
exchange auctions
JEL Classification: D44