Cash versus share auctions: An experimental study

Last registered on November 13, 2023


Trial Information

General Information

Cash versus share auctions: An experimental study
Initial registration date
July 12, 2021

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
July 13, 2021, 9:35 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
November 13, 2023, 9:31 PM EST

Last updated is the most recent time when changes to the trial's registration were published.


Primary Investigator

University of Otago

Other Primary Investigator(s)

PI Affiliation
University of Bath
PI Affiliation
Vrije Universiteit Amsterdam

Additional Trial Information

Start date
End date
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Almost all the existing literature on auctions – theoretical and experimental – focuses on the case when bidders make cash bids. In recent auction practice, however, bidders often can make share bids; that is, they bid a share of the future cash flow that is generated after winning the auction. In this experimental study, we investigate bidding behavior in the context of share auctions, both for first- and second-price sealed-bid auctions, and compare it to bidding behavior in cash auctions.
External Link(s)

Registration Citation

Bajoori, Elnaz, Ronald Peeters and Leonard Wolk. 2023. "Cash versus share auctions: An experimental study." AEA RCT Registry. November 13.
Experimental Details


Intervention Start Date
Intervention End Date

Primary Outcomes

Primary Outcomes (end points)
Improve our understanding of the functioning and performance of equity auctions.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The experiment will be conducted online using oTree and participants will be recruited using Prolific.

Participants are, in pairs, bidding to take over a hypothetical company. The future profit (i.e., the value) of the company is uncertain, but bidders receive independently a signal regarding the probabilities associated with the possible profit levels. The distributions over the future profit levels are such that those for higher signals first-order stochastically dominate those for lower signals.

We have a 2x2 between-subjects design. One treatment dimension concerns the auction format being a first-price or a second-price sealed-bid auction. The other treatment dimension is whether bids are cash amounts or shares of the future profit.

Each treatment will be run following a strategy method: bidders specify their bid for each of the possible signals they can receive.
After having made their bidding decisions, there will be a short survey in which we ask few demographic questions and elicit their risk/loss attitude and risk literacy.
Experimental Design Details
Randomization Method
All randomizations are computerized.
Randomization Unit
The randomizations are on individual level.
Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters
Sample size: planned number of observations
200-240 participants (independent observations).
Sample size (or number of clusters) by treatment arms
50-60 participants (independent observations) per treatment.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

Institutional Review Boards (IRBs)

IRB Name
Vrije Universiteit School of Business and Economics Research Ethics Review Board
IRB Approval Date
IRB Approval Number
Analysis Plan

Analysis Plan Documents

Analysis Plan (hypotheses and data exclusion)

MD5: 21e16853513669a4db2f740fe8e53176

SHA1: 560094f046fe6931937d250e79541635150faf31

Uploaded At: July 12, 2021


Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information


Is the intervention completed?
Data Collection Complete
Data Publication

Data Publication

Is public data available?

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials