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We examine the relative performances of reverse auctions and request for quotes in a simple commodity environment. Enterprises embarking on a reverse auction initiative often start with their commodity purchases. We conduct laboratory experiments and find that this is a poor starting point. Both...
Persistent link: https://www.econbiz.de/10005835680
communication we find that collusive agreements are more fragile when the gain from a unilateral deviation is larger. We also find …
Persistent link: https://www.econbiz.de/10010552246
communication we find that collusive agreements are more fragile when the gain from a unilateral deviation is larger. We also find …
Persistent link: https://www.econbiz.de/10008557033
's knowledge public knowledge. The experiment replicates the results of earlier experimental studies (Dickhaut et al., 1995, Cai … other hand the decision makers rely too much on the received information. Moreover, communication as well as payoffs … communication is less biased. In all treatments, however, the messages are more precise than theoretically predicted. …
Persistent link: https://www.econbiz.de/10010884477
We examine strategic information transmission in a controlled laboratory experiment of a cheap talk game with one … communication between the sender and the receiver in a way consistent with the theoretical predictions. Deviations from the …
Persistent link: https://www.econbiz.de/10008784698
's messages. This confirms ``truth bias'' reported in communication theory in a one-shot, anonymous environment without nonverbal … under certain conditions. We claim that the theory for the evolution of language should address why truthful communication …
Persistent link: https://www.econbiz.de/10005556670
The paper reports experimental data on the behavior in the first-price sealed-bid auction for a varying number of market participants when values and bids are private information. In line with the theory, the data show that the price and the bid-value ratio increase with the number of...
Persistent link: https://www.econbiz.de/10005242944
This paper reports a new and significant experimental demonstration that market participants adjust their bids towards the price observed in previous market periods when – by design – individuals’ values should not be affiliated with the market price. This demonstration implies that market...
Persistent link: https://www.econbiz.de/10010672333
This paper reports a new and significant experimental demonstration that market participants adjust their bids towards the price observed in previous market periods when – by design – individuals’ values should not be affiliated with the market price. This demonstration implies that market...
Persistent link: https://www.econbiz.de/10005796053
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 experimental setup. To structure our data we present and...
Persistent link: https://www.econbiz.de/10004970274