Strategic bidding in a private value experimental auction with positive and negative bids

Ji Yong Lee and Fox, John A. (Sean)

No 204984, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: We treat a difference in initial bids for two private goods as an endogenous “induced” value. Results from follow up auctions eliciting positive or negative bids to exchange one good for the other suggest that positive WTP bids are demand revealing while subjects tended to overbid (in absolute value) negative WTA values. Controlling for risk attitude in WTA bids is shown to partially explain the WTA overbidding. WTA bids tended to be lower in a random nth price auction compared to those elicited in a 5th price auction.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Pages: 13
Date: 2015
New Economics Papers: this item is included in nep-exp and nep-upt
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:204984

DOI: 10.22004/ag.econ.204984

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