Data for research project "Price Trends in Sequential Auctions: The Case of Collectible Cars"

Select theories of price behavior in sequential auctions allow for stochastically arriving and departing bidders. However, empirical evidence of the effect of the number of bidders on price in sequential auctions is conspicuously absent. I use data from Mecum auctions for collectible cars, which I supplement with records of the number of bidders present at each auction round, to test the hypothesis that in sequential auctions the price rises with the number of bidders. The empirical test shows support for the hypothesis and provides a missing explanation for the declining price anomaly prevalent in sequential auctions.