The minimax argument represents game theory in its most elegant form: simple but with stark predictions. Although some of these predictions have been met with reasonable success in the field, experimental data have generally not provided results close to the theoretical predictions. In a...

This paper tests the empirical predictions of recent theories of the endogenous entry of bidders in auctions. Data come from a field experiment, involving sealed-bid auctions for collectible trading cards over the Internet. Manipulating the reserve prices in the auctions as an experimental...

Bidders on eBay frequently engage in sniping: that is, submitting a bid seconds before an auction closes. Using a field experiment, we attempt to measure the size of the benefit of sniping (if any). To do this we selected pairs of auctions that were as identical as possible (same item, same...

Recent auction theory and experimental results document strategic demand reduction by bidders in uniform-price auctions. The present article extends this area of research to consider the effects of varying the number of bidders. Our theoretical model predicts that demand reduction should...