We propose a novel approach to the modelling of second-price Maximum-Value auctions that assumes no belief about others' behavior and no expected profit maximization. This individual decision-making model, naïve Impulse Balance Equilibrium or nIBE, deals with bidders' anticipated regrets from...

We propose a novel approach to the modelling of behavior in first-price and all-pay auctions that builds on the use of a heuristic to achieve an Impulse Balance Equilibrium. The resulting individual decision-making model, nIBE, assumes no expected profit-maximization and accommodates any...