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

valuations implied from choices. We also find that auction data imply own-price elasticities of demand for higher quality … made non-hypothetical discrete choices between five goods. Despite the fact that the choice task and auction mechanisms are … incentive compatible, we find that auction bids were significantly lower, as much as two times lower in many cases, than …

In theory, efficiency and compliance levels induced by an emission trading system should not depend on the initial … allocation mechanism for permits in the absence of transaction costs. In a laboratory experiment we investigate this prediction …. While we do not identify an effect of the initial allocation procedure itself (auction vs. grandfathering), we observe …

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 …

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 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 …

. Enterprises embarking on a reverse auction initiative often start with their commodity purchases. We conduct laboratory … auctions. With respect to the general investigation of auctions, the request for quote is the mirror image of a first price … sealed bid auction and has the same symmetric Nash equilibrium. However, the request for quote allows identification of …