Summarizing panel discussions between auction practitioners and researchers at Northwestern University, this essay reviews the recent growth of on‐line auction sites and addresses some of their key benefits and costs. We also describe recent research on bidder behavior, focusing on bidder reactions to different auction mechanisms. We believe that there is immense potential for communication and collaboration between auction practitioners and researchers. Such dialogue could supply researchers timely, real‐world auction data. Simultaneously, the on‐line auction community would gain information about the mechanics of auction formats and their effects on bidder behavior.

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2001
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