Llorente-Saguer, Aniol; Sheremeta, Roman M.; Szech, Nora - 2016
contestants because of the "discouragement effect." Leveling the playing field by favoring weaker contestants through bid-caps and … in an experiment. Our data show that indeed, strengthening weaker contestants through tie-breaks and bid-caps … significantly diminishes the discouragement effect. Bid-caps can also improve revenue. Most deviations from Nash equilibrium can be …