Freeman, David; Kimbrough, Erik O.; Reiß, J. Philipp - 2017
Recent research suggests that auction winners sometimes fall prey to a "bidder's curse", paying more for an item at … auction than they would have paid at a posted price. One explanation for this phenomenon is that bidders are inattentive to … posted prices. We develop a model in which bidders' inattention, and subsequent overbidding, is driven by a rational response …