Does feedback really matter in one-shot first-price auctions?

Peter Katuščák, Fabio Michelucci and Miroslav Zajicek

Journal of Economic Behavior & Organization, 2015, vol. 119, issue C, 139-152

Abstract: Does the type of posterior feedback affect how people decide in one-shot environments? We revisit this question in first-price auction markets. We consider three feedback types: minimal (only knowing whether winning or not), loser (also knowing the winning bid) and winner (knowing the second highest bid if winning). Filiz-Ozbay and Ozbay (2007) find that loser as opposed to minimal or winner feedback increases bids. We use three novel protocols and additionally replicate theirs. Using a sample of 624 subjects, we find that bidders’ ex ante knowledge of posterior feedback type has no systematic effect on the average bid/value ratios.

Keywords: Auctions; Feedback; Regret; Market design (search for similar items in EconPapers)
JEL-codes: C91 C92 D44 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:119:y:2015:i:c:p:139-152

DOI: 10.1016/j.jebo.2015.08.002

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