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We consider second-price and first-price auctions in the symmetric independent private values framework. We modify the standard model by the assumption that the bidders have reference-based utility, where a publicly announced reserve price has some influence on the reference point. It turns out...
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auction itself. The design is shown to be field-ready …
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The success of eBay.com has inspired a new generation of online auction websites. Quibids.com and Swoopo.com are new … bidders pay a fee for every bid they place. This format is a generalization of the “penny auction,” an auction that consists … general parameters. Using this model, I explore answers to the following questions: Can we describe how auction participants …
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Discussions about market efficiency in finance are unfocused when they fail to distinguish between the price-equals-value market hypothesis and the hard-to-beat market hypothesis. And discussions are further lacking when they fail to explain why so many investors believe that markets are easy to...
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