In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …

Auctions often involve goods exhibiting a common knowledge ex-post risk that is independent of buyers' private values … or their signals regarding common value components. Esö and White (2004) showed theoretically that ex-post risk leads to … precautionary bidding for DARA bidders: Agents reduce their bids by more than their appropriate risk premium. Testing precautionary …

Auctions often involve goods exhibiting a common knowledge ex-post risk. Precautionary bidding predicts that under … expected utility, ex-post risk leads DARA bidders to reduce their bids by more than the appropriate risk premium. Because the … degree of riskiness of the good, and bidders risk aversion, are difficult to observe in field settings, we conduct …

measured in the 11–20 game is biased by risk aversion. Based on a lab experiment, we confirm this hypothesis empirically. … players are more likely to choose high numbers if they are risk-averse rather than risk neutral. Hence, the depth of thinking …

We apply the basic lessons and insights learned in the elicitation and estimation of risk and time preferences … literature to the literature on social preferences. Following Andersen et al. (2008), we design a laboratory experiment to … jointly elicit risk preferences and preferences for altruism. Consistent with theory, we find that the standard simplifying …

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 …

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 … large amount of sales occurs already during the negotiation stage. We show that risk preferences can theoretically account …

. Employing an order-balanced design, we use first-price auctions (FPAs) to expose participants to an auction format in which …

cognitive skills. Employing an order-balanced design, we use first-price auctions (FPAs) to expose participants to an auction …