Pricing A Pig In A Poke: Endogenous Valuations And Storage Unit Auctions

Abstract

Storage unit auctions have recently received widespread attention from reality shows and “get rich easy” business models. This study examines the pitfalls associated with winning storage unit auctions, commonly observed bidding strategies, participant behavior and auction methods. Storage unit auctions present a classic example of endogenous valuation using incomplete information and imperfect secondary markets. The examination of the contents of a storage unit auction yields a novel use for the facility and sheds light on the process that leads to a lien and sale.