Kocher, Martin G.; Pahlke, Julius; Trautmann, Stefan T. - School of Economics, University of East Anglia - 2010
precautionary bidding for DARA bidders: Agents reduce their bids by more than their appropriate risk premium. Testing precautionary … directly identify the precautionary premium and find clear evidence for precautionary bidding. Bidders are significantly better … bidding with data from the field seems almost impossible. We conduct experimental first-price auctions that allow us to …