Kirchkamp, Oliver; Reiß, Philipp - Centre for Research into Industry, Enterprise, Finance … - 2006
correct expectations. (2) Bidders do not play a best reply against their expectations. We present a novel experimental setup … which allows to observe bids and expectations separately. We extensively test the internal validity of this setup. We find … that off equilibrium expectations explain, if at all, underbidding. Off equilibrium bids do not seem to be due to wrong …