Does Anticipated Regret Really Matter? Revisiting the Role of Feedback in Auction Bidding

Peter Katuscak (), Fabio Michelucci and Miroslav Zajicek

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: Does the type of post-auction feedback affect bidding behavior in first price auctions? Filiz- Ozbay and Ozbay (2007) find that such manipulation can increase bids in a one-shot auction. They explain this as an effect of anticipated regret combined with the assumption that feedback directly affects salience of regret relative to material payoff. We revisit this important market design issue using four different auction protocols and a large sample of subjects. We do not find any systematic effect of feedback on the average bid/value ratio. This evidence indicates either the lack of anticipated regret or its manipulability by feedback in one-shot auctions.

Keywords: auctions; bidding; feedback; regret (search for similar items in EconPapers)
JEL-codes: C91 C92 D44 (search for similar items in EconPapers)
Date: 2013-06
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp487

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