Economic theory predicts that in a first-price auction with equal and observable valuations, bidders earn zero profits. Theory also predicts that if valuations are not common knowledge, then since it is weakly dominated to bid your valuation, bidders will bid less and earn positive profits....

Experimental economists believe (and enforce the idea) that researchers should not employ deception in the design of experiments. This rule exists in order to protect a public good: the ability of other researchers to conduct experiments and to have participants trust their instructions to be an...