Timber sale value as a function of sale characteristics and number of bidders

Paul E. Sendak; Paul E. Sendak

doi:10.2737/NE-RP-657

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Timber sale value as a function of sale characteristics and number of bidders

Informally Refereed

Authors:

Paul E. Sendak, Paul E. Sendak

Year:

1991

Type:

Research Paper

Station:

Northern Research Station

DOI:

https://doi.org/10.2737/NE-RP-657

Source:

Res. Pap. NE-657. Radnor, PA: U.S. Department of Agriculture, Forest Service, Northeastern Forest Experiment Station. 7 p.

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Abstract

Examines the effect of sale characteristics and number of bidders on sale value for timber sold by sealed-bid auction on the Green Mountain National Forest in Vermont. As anticipated from theory and previous empirical studies, increasing the number of bidders tended to increase the winning-bid value for the timber auctions studied. Efforts made to ensure that a timber sale offering received at least one qualified bid had a greater impact on sales revenue than efforts made to increase high-bid value. In designing sales, managers should avoid setting appraisal value too high in relation to timber quality.

Keywords

Appraisal, auctions, national forest, Tobit

Citation

Sendak, Paul E. 1991. Timber sale value as a function of sale characteristics and number of bidders. Res. Pap. NE-657. Radnor, PA: U.S. Department of Agriculture, Forest Service, Northeastern Forest Experiment Station. 7 p.