one potential buyer about the price of the good. If the negotiation fails to produce a sale, a second–price sealedâ …€“bid auction with an additional buyer is conducted. The theoretical model predicts that with risk neutral agents all sales take … place in the auction rendering the negotiation prior to the auction obsolete. An experimental test of the model provides …

We investigate experimentally whether emotions affect bidding behavior in a first price auction. To induce emotions, we … confront subjects after a first auction series with a positive or negative random economic shock. We then explore the relation … between emotions and bidding behavior in a second auction series. Our main results are: (i) the economic shock has a …

Australian Carbon Pollution Reduction Scheme proposed design of tying the penalty rate to the auction price. Compliance …. However, the theory holds with regard to permit price discovery, as we find no evidence of the effect of penalty design on … auction price. Interestingly, risk preference does not directly affect compliance decision, but it does influence price …

bidding with data from the field seems almost impossible. We conduct experimental first-price auctions that allow us to …

We study experimentally the selection into first-price sealed-bid auctions for a risky or an ambiguous prospect. Most … bidders. A control experiment with selection in a simple choice task shows that subjects correctly anticipate the effects of …

In this paper we derive equilibrium bidding functions for first-price and second-price auctions with private values … respond to outside options and to variations of common knowledge about competitors’ outside options, though bidders in first-price … auctions show more overbidding with outside options than without. In second-price auctions overbidding is not affected by …

First-price auction experiments find often substantial overbidding which is typically related to risk aversion. We … the help of experiments, compare bidding in first-price and second-price auctions and study revenue under different …

one potential buyer about the price of the good. If the negotiation fails to produce a sale, a second-price sealed …-bid auction with an additional buyer is conducted. The theoretical model predicts that with risk neutral agents all sales take … place in the auction rendering the negotiation prior to the auction obsolete. An experimental test of the model provides …