Bidding challenges learning theories, since with the same bid, experiences vary stochastically: the same choice can result in either a gain or a loss. In such an environment the question arises how the nearly universally documented phenomenon of loss aversion affects the adaptive dynamics. We...

We propose a novel approach to the modelling of second-price Maximum-Value auctions that assumes no belief about others' behavior and no expected profit maximization. This individual decision-making model, naïve Impulse Balance Equilibrium or nIBE, deals with bidders' anticipated regrets from...

The paper reports on market-entry experiments that manipulate both payoff structures and payoff levels to assess two stationary models of behaviour: Exploration vs Exploitation (EvE, which is equivalent to Quantal Response Equilibrium) and Impulse Balance Equilibrium (IBE). These models explain...

We propose a novel approach to the modelling of behavior in first-price and all-pay auctions that builds on the use of a heuristic to achieve an Impulse Balance Equilibrium. The resulting individual decision-making model, nIBE, assumes no expected profit-maximization and accommodates any...

The paper reports on market-entry experiments that manipulate both payoff structures and payoff levels to assess two stationary models of behaviour: Exploration vs Exploitation (EvE, which is equivalent to Quantal Response Equilibrium) and Impulse Balance Equilibrium (IBE). These models explain...

The paper reports an analysis of price behaviour at a fish market which is organised as a sequence of descending-price auctions and which is attended by two different types of buyers: retailers and wholesalers. The main outcome of this study is that although each type of buyer paid different...