Introduction
In today’s and the next column I shall draw attention to selected policy research that has focused on evaluating the performance of oil rights public auctions over substantial periods of time. However, before embarking on the pre-set task I shall provide, as I promised in last week’s column a few summary observations on the methodology of auctions in order to wrap-up last week’s contribution.
Summary Observations on Auctions
The literature identifies four broad types of auctions, where these are utilized as a means for maximizing revenues. First, there is the English or ascending auction. Here buyers make progressively higher bids, and drop out when the bid rises past the value they attach to the object on sale. This continues until only one bidder remains. That bidder then pays the price at which the second highest bidder dropped out.