Banerjee, Prasenjit; Shogren, Jason F. - In: Journal of Economic Behavior & Organization 97 (2014) C, pp. 126-137
Although rational choice theory presumes people have a point estimate of their willingness to pay (WTP) for a good or service, the idea of coherent arbitrariness suggests they have an interval of values. Herein we explore bidding behavior in a second-price auction in which bidders have point or...