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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...
Persistent link: https://www.econbiz.de/10011607087
We extend Wilson (1979) share auction framework to model the uniform-price US Treasury auction as a two-stage multiple … its bidding behavior in handling the risk of being short-squeezed or face the winner curse in the post-auction market …
Persistent link: https://www.econbiz.de/10012893365
.S. Forest Service timber auctions, we document a set of systematic effects of auction format: sealed bid auctions attract more … for these qualitative effects of auction format. We then calibrate the model using parameters estimated from the data and … bidder competitiveness, which has important consequences for auction choice. …
Persistent link: https://www.econbiz.de/10011607074
We model the uniform-price US Treasury security auction as a static symmetric game of incomplete information in which … each payer is a primary dealer who submits a demand schedule given two independent sources of private information – his pre-auction … we show how his pre-auction short position impacts his bidding behavior – in particular: the dealer's demand for the …
Persistent link: https://www.econbiz.de/10012905263
the spot market. -- capacity market ; procurement auction ; electricity market ; competitive equilibrium …
Persistent link: https://www.econbiz.de/10009743582
Bidding in the last seconds or minutes of an auction is a common strategy in Internet auctions with fixed end …
Persistent link: https://www.econbiz.de/10011599112
; menstrual cycle ; gender ; likelihood of conception ; first price auction ; risk behavior ; competition ; bidding …
Persistent link: https://www.econbiz.de/10003878997
Contemporary research documents various psychological aspects of economic thought and decision-making. The main goal of our study is to analyze the role of the hindsight bias (Fischhoff [20]) and the anchoring bias (Tversky and Kahneman [53]) in perceiving economic and financial information,...
Persistent link: https://www.econbiz.de/10009240769
resistance. We develop an auction model that features costly sequential entry of bidders in takeover contests and that … their rivals. Merger, auctions, target resistance, preemptive bidding, structural estimation …
Persistent link: https://www.econbiz.de/10009375142
This paper proposes several statistical tests for finite state Markov games to examine the null hypothesis that the data are generated from a single equilibrium. We formulate tests of (i) the conditional choice probabilities, (ii) the steady-state distribution of states and (iii) the conditional...
Persistent link: https://www.econbiz.de/10010199002