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Anticipated loser regret in third price auctions

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  • Filiz-Ozbay, Emel
  • Ozbay, Erkut Y.

Abstract

Losing the auction at an affordable price generates loser regret. In third price auctions if bidders anticipate loser regret, then in line with the experimental findings, in a symmetric equilibrium the bids are more than the risk neutral Nash equilibrium.

Suggested Citation

  • Filiz-Ozbay, Emel & Ozbay, Erkut Y., 2010. "Anticipated loser regret in third price auctions," Economics Letters, Elsevier, vol. 107(2), pages 217-219, May.
    • Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:217-219
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wladislaw Mill & Jonathan Stäbler, 2023. "Spite in Litigation," CESifo Working Paper Series 10290, CESifo.
    2. Oliver Kirchkamp & Wladislaw Mill, 2019. "Spite vs. risk: explaining overbidding," CESifo Working Paper Series 7631, CESifo.
    3. Hyndman, Kyle & Ozbay, Erkut Y. & Sujarittanonta, Pacharasut, 2012. "Rent seeking with regretful agents: Theory and experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 84(3), pages 866-878.
    4. Kirchkamp, Oliver & Mill, Wladislaw, 2021. "Spite vs. risk: Explaining overbidding in the second-price all-pay auction," Games and Economic Behavior, Elsevier, vol. 130(C), pages 616-635.
    5. Peter Cramton & Emel Filiz-Ozbay & Erkut Ozbay & Pacharasut Sujarittanonta, 2012. "Fear of losing in a clock auction," Review of Economic Design, Springer;Society for Economic Design, vol. 16(2), pages 119-134, September.
    6. Mill, Wladislaw, 2017. "The spite motive in third price auctions," Economics Letters, Elsevier, vol. 161(C), pages 71-73.
    7. Mill, Wladislaw & Morgan, John, 2022. "Competition between friends and foes," European Economic Review, Elsevier, vol. 147(C).

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