Cox, James; Dinkin, Sam; Swarthout, James - In: Experimental Economics 4 (2001) 2, pp. 163-181
We develop and experimentally test a model of endogenous entry, exit, and bidding in common value auctions. The model and experimental design include an alternative profitable activity (a “safe havenâ€) that provides agent-specific opportunity costs of bidding in the auction. Each agent...