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 …

We present results from a series of experiments that allow us to measure overbidding and, in particular, underbidding …

We study the correlation of choice under risk in Holt-Laury lotteries for gains and losses with gender, the use of … the digit ratio (2D:4D) in more than 200 subjects. In males, salivary testosterone is negatively correlated with risk … aversion for gains only. In females, salivary cortisol is positively correlated with risk aversion for gains only. No other …

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 …

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 …

This paper investigates various theories explaining banks' overbidding in the fixed rate tenders of the European … explain the observed overbidding. This implies that the proposed new rules by the ECB, aimed at neutralizing interest rate … expectations, would not eliminate overbidding if the rationing rule in the fixed rate tenders remains unchanged. …