BIDDING STRATEGIES OF SEQUENTIAL FIRST PRICE AUCTIONS PROGRAMMED BY EXPERIENCED BIDDERS

Tibor Neugebauer

Experimental from University Library of Munich, Germany

Abstract: This paper considers bidding automata programmed by experienced subjects in sequential first price sealed bid auction experiments. These automata play against each other in computer tournaments. The risk neutral subgame perfect Nash equilibrium strategy of the independent private value model serves as a benchmark. The equilibrium strategy does not describe any of the heterogeneous automata programs submitted by subjects and does not always perform better than average in the tournament.

Keywords: Experimental Economics; First-Price Sealed-Bid Auctions; Sequential Auctions; Independent Private Value Model; Finite Automata (search for similar items in EconPapers)
JEL-codes: C12 C13 C72 C92 D44 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2005-03-25
New Economics Papers: this item is included in nep-exp
Note: Type of Document - pdf; pages: 32
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpex:0503007

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