Collusive agreements are often observed in procurement auctions. They are probablymore easily achieved when competitors’ costs are easily estimated. If, however, the individualcosts of bidders are private information, effective ring formation is difficult to realize.We compare experimentally...

Collusive agreements are often observed in procurement auctions. They are probably more easily achieved when competitors’ costs are easily estimated. If, however, the individual costs of bidders are private information, effective ring formation is difficult to realize. We compare...

Theoretically and experimentally, we generalize the analysis of acquiringa company (Samuelson and Bazerman 1985) by allowing for competition ofboth, buyers and sellers. Naivety of both is related to the idea that higherprices exclude worse qualities. While competition of naive buyers...

Bidding challenges learning theories since experiences with the same bid vary stochastically:the same choice can result in either a gain or a loss. In such an environment thequestion arises how the nearly universally documented phenomenon of loss aversion affectsthe adaptive dynamics. We analyze...

Are commonly known beliefs essential for bidding behavior in asymmetric auctions? Our experimental results suggest that not informing participants how values are randomly generated does not change behavior much and may even make it appear more rational.

Similar to Levati and Neugebauer (2001), a clock is used by which participantscan vary their individual contributions for voluntarily providing apublic good. As time goes by, participants either in(de)crease their contributiongradually or keep it constant. Groups of two poorly and two...

Although one may hope to achieve equality of stated profits withoutenforcing it, one may not trust in such voluntary equality seeking andrather try to impose rules (of bidding) guaranteeing it.[...]

In auctions an outside seIler offers a commodity for sale and collects the revenue w hich is achieved. In fair division games the object is owned by the group of bidders. Consequently the auction's revenue is equally distributed among all bidders. In our experiment participants face four auction...

We examine learning behavior in auctions and Fair division games with independent private values under two different price rules, first and second price. Participants face these four games repeatedly and submit complete bid functions rather than single bids. This allows us to examine whether...

We review an asymmetric auction experiment. Based on Plum (1992) private valuations of the two bidders are independently drawn from distinct but commonly known distributions, one of which stochastically dominating the other. We test the qualitative properties of that model of asymmetric...