Recent research suggests that auction winners sometimes fall prey to a "bidder's curse", paying more for an item at … auction than they would have paid at a posted price. One explanation for this phenomenon is that bidders are inattentive to … posted prices. We develop a model in which bidders' inattention, and subsequent overbidding, is driven by a rational response …

Overbidding in second-price auctions (SPAs) has been shown to be persistent and associated with cognitive ability. We … study experimentally to what extent cross-game learning can reduce overbidding in SPAs, taking into account cognitive skills …. Employing an order-balanced design, we use first-price auctions (FPAs) to expose participants to an auction format in which …

overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and …In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for …. Indeed, we find that spite is a more convincing explanation for bidding behavior for the second-price all-pay auction. Not …

Our study compares individual and team bidding in standard auction formats: first-price, second-price and ascending …-price (English) auctions with independent private values. In a laboratory experiment, we find that individuals overbid more than …

Overbidding in auctions has been attributed to e.g. risk aversion, loser regret, level-k, and cursedness, relying on … ("cursedness"). Second, re-analyzing data from seven experiments, I show that type projection explains the stylized facts of …

We conduct a laboratory experiment where groups of 4 subjects constrained to obtain at most one good each, sequentially … bid for three goods in first and second price auctions. Subjects learn at the beginning of each auction their valuation … for the good and exit the auction once they have obtained one good. We show that, contrary to equilibrium predictions …

second-price auctions. Overbidding is a robust finding in second- price auctions, and spite among bidders has been advanced … as an explanation. If spite extends to the seller, then the absence of human sellers who receive the auction revenue may … where bidders have preferences regarding both, the payoffs of other bidders and the seller's revenue. Overbidding is optimal …