for bidding at the capacity market while the capacity sold on the capacity market, since no longer available for spot … market bidding, influences the product market outcome. We show that a competitive simultaneous equilibrium exists. This … equilibrium is unique and efficient. It is characterized by a u-shaped bidding function in the capacity market with respect to the …

This paper provides evidence of bounded rationality by large dealers in U.S. Treasury auctions. I argue that these … dealers use a heuristic of yield-space bidding which leads to biases manifested in three ways: they submit dominated bids, i ….e., those that could be improved without raising the bidding price; they bid in a manner that disregards the unevenly spaced …

We study entry and bidding patterns in sealed bid and open auctions with heterogeneous bidders. Using data from U ….S. Forest Service timber auctions, we document a set of systematic effects of auction format: sealed bid auctions attract more … extends the theory of private value auctions with heterogeneous bidders to capture participation decisions, that can account …