We conduct experiments on common value auctions with rationing. In each auction, the good is randomly allocated to each of the k highest bidders, at the (k+1)st highest price. As the degree of rationing increases, the theoretical winner's curse decreases, and the equilibrium bid function...

Considerable evidence has accumulated which shows that the choice behavior of individuals exhibits systematic departures from expected utility maximization. The focus of the paper is to develop some measures of the extent to which utility maximization nevertheless remains a useful approximation....

Considerable evidence has accumulated which shows that the choice behavior of individuals exhibits systematic departures from expected utility maximization. The focus of the paper is to develop some measures of the extent to which utility maximization nevertheless remains a useful approximation....

Economics is often taught at a level of abstraction that can hinder some students from gaining basic intuition. However, lecture and textbook presentations can be complemented with classroom exercises in which students make decisions and interact. The approach can increase interest in, and...