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A pure variation of risk in first-price auctions
Kirchkamp, Oliver; Reiss, J. Philipp; Sadrieh, Abdolkarim - 2006
decreasing bidders' risk significantly reduces the degree of overbidding relative to the risk-neutral Bayesian-Nash equilibrium …We introduce a new method of varying the risk that bidders face in first-price private value auctions. We find that … prediction. This implies that risk affects bidding behavior as generally expected in auction theory. While resolving a long …
Persistent link: https://www.econbiz.de/10010263870
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Spite vs. risk: explaining overbidding
Kirchkamp, Oliver; Mill, Wladislaw - 2019
overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and …In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …
Persistent link: https://www.econbiz.de/10012018322
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Spite vs. risk : explaining overbidding
Kirchkamp, Oliver; Mill, Wladislaw - 2019
overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and …In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …
Persistent link: https://www.econbiz.de/10012002983
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Precautionary Bidding in Auctions
Esö, Péter; White, Lucy - C.E.P.R. Discussion Papers - 2003
We analyse bidding behaviour in auctions when risk-averse buyers bid for a good whose value is risky. We show that when … risk in the valuations increases, DARA bidders will reduce their bids by more than the appropriate increase in the risk … marginal utility of income increases with risk, so buyers are reluctant to bid so highly. We also show that precautionary …
Persistent link: https://www.econbiz.de/10005114473
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Do REITs outperform stocks and fixed-income assets? : new evidence from mean-variance and stochastic dominance approaches
Chiang, Thomas C.; Hooi Hooi Lean; Wong, Wing Keung - In: Journal of risk and financial management : JRFM 1 (2008) 1, pp. 1-40
This paper re-examines the performance of REITs, stocks, and fixed-income assets based on the preferences of risk …-averse and risk-seeking investors using mean-variance and stochastic dominance approaches. Our findings indicate no first … order to maximize their expected utility, the risk-averse prefer fixed-income assets over real estate, which, in turn, is …
Persistent link: https://www.econbiz.de/10011556251
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On the attitude to risk and the decision-making behavior
Cocioc, Paul - In: Review of economic studies and research Virgil Madgearu 10 (2017) 1, pp. 27-46
Persistent link: https://www.econbiz.de/10011977644
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Buy-it-Now Prices in eBay Auctions-The Field in the Lab
Grebe, Tim; Ivanova-Stenzel, Radosveta; Kröger, Sabine - Centre Interuniversitaire sur le Risque, les Politiques … - 2009
This article is an experimental investigation on decision making in online auction markets. We focus on a widely used format, the Buy-It-Now auction on eBay, where sellers post prices at which buyers can purchase a good prior to an auction. Even though, buyer behavior is well studied in...
Persistent link: https://www.econbiz.de/10008472117
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When a risky prospect is valued more than its best possible outcome
Drichoutis, Andreas C.; Rodolfo M. Nayga, Jr.; Lusk, … - Department of Agricultural Economics, Agricultural … - 2009
In this paper, we document a violation of normative and descriptive models of decision making under risk. In contrast …
Persistent link: https://www.econbiz.de/10008528785
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Curiosity of Pay-Per-Bid Auctions: Evidence from Bonus.cz Auction Site
Svoboda, Miroslav; Bocák, Petr - In: Prague Economic Papers 2013 (2013) 3, pp. 418-432
This paper analyses the pay-per-bid auctions which have appeared recently on the Internet and scored an immediate business success. In these auctions bidders pay a small, but irrevocable fee each time they want to increase the price. In this paper we test the model suggested by Platt, Price and...
Persistent link: https://www.econbiz.de/10011195631
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Elicited Bid Functions in a (a)Symmetric First-Price Auctions
Pezanis-Christou, P.; Sadrieh, A. - Tilburg University, Center for Economic Research - 2003
equilibrium predictions for risk neutral or homogenous risk averse bidders (extent of bid shading, average seller s revenues and …
Persistent link: https://www.econbiz.de/10011091613