Information Asymmetry in Mauritius Slave Auctions

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Serval ID
serval:BIB_246CAFD87703
Type
Report: a report published by a school or other institution, usually numbered within a series.
Publication sub-type
Working paper: Working papers contain results presented by the author. Working papers aim to stimulate discussions between scientists with interested parties, they can also be the basis to publish articles in specialized journals
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Publications
Institution
Title
Information Asymmetry in Mauritius Slave Auctions
Author(s)
Dionne G., St-Amour P., Vencatachellum D.
Institution details
Université de Lausanne - HEC - DEEP
Issued date
09/2006
Number
07.06
Genre
Cahiers de recherches économiques
Language
english
Number of pages
51
Notes
Published under the title "Asymmetric Information and Adverse Selection in Mauritian Slave Auctions", in: Review of Economic Studies, 76(4), October 2009, pp. 1269-1295
Abstract
Evidence on adverse selection in slave markets remains inconclusive. A necessary prerequisite is that buyers and sellers have different information. We study informational asymmetry on the slave markets through notarial acts on public slave auctions in Mauritius between 1825 and 1835, involving 4,286 slaves. In addition to slave characteristics, the acts document the identities of buyers and sellers. We use this information to determine whether the buyer of a slave was related (e.g. a relative or a spouse) to the original slave owner, and thus most likely better--informed than other bidders. Auction--theoretic models predict that bidding should be more aggressive when informed bidders are present in open-bid, ascending auctions, such as slave auctions. By proxying informed bidders by related bidders, our results consistently indicate that this is the case, pointing toward the presence of information asymmetry in the market for slaves in Mauritius.
Keywords
information asymmetry, adverse selection, english auctions, slavery, Mauritius
Create date
30/04/2008 16:07
Last modification date
20/08/2019 14:02
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