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Lower price increases, the bounded rationality of bidders, and underbidding concerns in online agricultural land auctions : the Ukrainian case

Myrna, Olena - In: Journal of agricultural economics : JAE 73 (2022) 3, pp. 826-844

Persistent link: https://www.econbiz.de/10013384825

Heterogeneous bids in auctions with rational and markdown bidderstheory and experiment

Kirchkamp, Oliver; Reiss, J. Philipp - 2008

We present results from a series of experiments that allow us to measure overbidding and, in particular, underbidding … in first-price auctions. We investigate how the amount of underbidding depends on seemingly innocent parameters of the …

Persistent link: https://www.econbiz.de/10010276381

The loser's bliss in auctions with price externality

Haruvy, Ernan; Popkowski Leszczyc, Peter T. L. - In: Games 6 (2015) 3, pp. 191-213

We consider auctions with price externality where all bidders derive utility from the winning price, such as charity auctions. In addition to the benefit to the winning bidder, all bidders obtain a benefit that is increasing in the winning price. Theory makes two predictions in such settings:...

Persistent link: https://www.econbiz.de/10011316603

Spite vs. risk : explaining overbidding

Kirchkamp, Oliver; Mill, Wladislaw - 2019

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 …

Persistent link: https://www.econbiz.de/10012002983

Does the absence of human sellers bias bidding behavior in auction experiments?

Bartling, Björn; Gesche, Tobias; Netzer, Nick - 2016

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 …

Persistent link: https://www.econbiz.de/10011456510

Sequential auctions with capacity constraints : an experimental investigation

Otamendi, F. Javier; Brocas, Isabelle; Carrillo, Juan D. - In: Games 9 (2018) 1/15, pp. 1-31

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 …

Persistent link: https://www.econbiz.de/10011849226

Another explanation for overbidding and another bias for underbidding in first-price auctions.

Kirchkamp, Oliver; Reiß, Philipp - Centre for Research into Industry, Enterprise, Finance … - 2006

First-price auction experiments find often substantial overbidding which is typically related to risk aversion. We … introduce a model where some bidders use constrained linear bids. As with risk aversion this leads to overbidding if valuations … are high, but in contrast to risk aversion the model predicts underbidding if valuations are low. We test this model with …

Persistent link: https://www.econbiz.de/10005671119