This paper explores the impact of behavioral biases, specifically the winner’s curse and anchoring and insufficient adjustment on auction outcomes in the Dublin residential real estate market in the period immediately preceding the peak of what became the biggest property crash in recent...

In this clinical study, we examine the winnerís curse hypothesis that rational agents, in an auction setting, will impute an inverse relation between bids and price uncertainty and between bids and the level of competition. To accomplish same, we avail of a unique data set of 548 successful...