Losing the auction at an affordable price generates loser regret. In third price auctions if bidders anticipate loser regret, then in line with the experimental findings, in a symmetric equilibrium the bids are more than the risk neutral Nash equilibrium.

Gneezy [Gneezy, U., 2005. Deception: the role of consequences. American Economic Review 95, 384-394.] recently showed that lying is costly. Using the same experimental design we test whether there is a gender difference in deception. We find that men are significantly more likely than women to...