An Experimental Test of Precautionary Bidding
Author
Abstract
Suggested Citation
Download full text from publisher
Other versions of this item:
- Martin G. Kocher & Julius Pahlke & Stefan T. Trautmann, 2010. "An experimental test of precautionary bidding," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-08, School of Economics, University of East Anglia, Norwich, UK..
References listed on IDEAS
- Péter Esö & Lucy White, 2004.
"Precautionary Bidding in Auctions,"
Econometrica, Econometric Society, vol. 72(1), pages 77-92, January.
- Peter Eso & Lucy White, 2001. "Precautionary Bidding in Auctions," Discussion Papers 1331, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- White, Lucy & Esö, Péter, 2003. "Precautionary Bidding in Auctions," CEPR Discussion Papers 3975, C.E.P.R. Discussion Papers.
- Cary Deck & Harris Schlesinger, 2010.
"Exploring Higher Order Risk Effects,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(4), pages 1403-1420.
- Cary Deck & Harris Schlesinger, 2008. "Exploring Higher-Order Risk Effects," CESifo Working Paper Series 2487, CESifo.
- Louis Eeckhoudt & Harris Schlesinger, 2006.
"Putting Risk in Its Proper Place,"
American Economic Review, American Economic Association, vol. 96(1), pages 280-289, March.
- Louis Eeckhoudt & Harris Schlesinger, 2005. "Putting Risk in its Proper Place," CESifo Working Paper Series 1462, CESifo.
- EECKHOUDT, Louis & SCHLESINGER, Harris, 2006. "Putting risk in its proper place," LIDAM Reprints CORE 1871, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- L. Eeckhoudt & H. Schlesinger, 2006. "Putting risk in its proper place," Post-Print hal-00283170, HAL.
- Cox, James C & Smith, Vernon L & Walker, James M, 1985. "Experimental Development of Sealed-Bid Auction Theory: Calibrating Controls for Risk Aversion," American Economic Review, American Economic Association, vol. 75(2), pages 160-165, May.
- Kimball, Miles S, 1990.
"Precautionary Saving in the Small and in the Large,"
Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
- Miles S. Kimball, 1989. "Precautionary Saving in the Small and in the Large," NBER Working Papers 2848, National Bureau of Economic Research, Inc.
- Cox, James C. & Smith, Vernon L. & Walker, James M., 1982. "Auction market theory of heterogeneous bidders," Economics Letters, Elsevier, vol. 9(4), pages 319-325.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- Levy, Haim, 1994. "Absolute and Relative Risk Aversion: An Experimental Study," Journal of Risk and Uncertainty, Springer, vol. 8(3), pages 289-307, May.
- Vincent P. Crawford & Nagore Iriberri, 2007.
"Level-k Auctions: Can a Nonequilibrium Model of Strategic Thinking Explain the Winner's Curse and Overbidding in Private-Value Auctions?,"
Econometrica, Econometric Society, vol. 75(6), pages 1721-1770, November.
- Vincent P. Crawford & Nagore Iriberri, 2005. "Level-k Auctions: Can a Non-Equilibrium Model of Strategic Thinking Explain the Winner's Curse and Overbidding in Private-Value Auctions?," Levine's Bibliography 784828000000000604, UCLA Department of Economics.
- Vincent P. Crawford & Nagore Iriberri, 2006. "Level-k Auctions: Can a Non-Equilibrium Model of Strategic Thinking Explain the Winner's Curse and Overbidding in Private-Value Auctions?," Levine's Bibliography 321307000000000256, UCLA Department of Economics.
- Vincent P Crawford & Nagore Iriberri, 2007. "Level-k Auctions: Can a Non-Equilibrium Model of Strategic Thinking Explain the Winner's Curse and Overbidding in Private-Value Auctions?," Levine's Bibliography 321307000000001005, UCLA Department of Economics.
- Crawford, Vincent P. & Iriberri, Nagore, 2005. "Level-k Auctions: Can a Non-Equilibrium Model of Strategic Thinking Explain the Winner's Curse and Overbidding in Private-Value Auctions?," University of California at San Diego, Economics Working Paper Series qt12586197, Department of Economics, UC San Diego.
- Eeckhoudt, Louis & Gollier, Christian & Schlesinger, Harris, 1996.
"Changes in Background Risk and Risk-Taking Behavior,"
Econometrica, Econometric Society, vol. 64(3), pages 683-689, May.
- Harris Schlesinger, 1992. "Changes in Background Risk and Risk Taking Behavior," CESifo Working Paper Series 19, CESifo.
- EECKHOUDT, Louis & Christian GOLLIER & Harris SCHLESINGER, 1994. "Changes in Background Risk and Risk Taking Behavior," Working Papers 005, Risk and Insurance Archive.
- Richard Engelbrecht-Wiggans & Elena Katok, 2007. "Regret in auctions: theory and evidence," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(1), pages 81-101, October.
- Yoram Halevy, 2007.
"Ellsberg Revisited: An Experimental Study,"
Econometrica, Econometric Society, vol. 75(2), pages 503-536, March.
- Halevy, Yoram, 2005. "Ellsberg Revisited: an Experimental Study," Microeconomics.ca working papers halevy-05-07-26-11-51-13, Vancouver School of Economics, revised 25 Feb 2014.
- Isaac, R Mark & James, Duncan, 2000. "Just Who Are You Calling Risk Averse?," Journal of Risk and Uncertainty, Springer, vol. 20(2), pages 177-187, March.
- Karni, Edi & Safra, Zvi, 1987. ""Preference Reversal' and the Observability of Preferences by Experimental Methods," Econometrica, Econometric Society, vol. 55(3), pages 675-685, May.
- Ernst Fehr & Lorenz Goette, 2007.
"Do Workers Work More if Wages Are High? Evidence from a Randomized Field Experiment,"
American Economic Review, American Economic Association, vol. 97(1), pages 298-317, March.
- Ernst Fehr & Lorenz G�tte, 2005. "Do Workers Work More if Wages are High? Evidence from a Randomized Field Experiment," IEW - Working Papers 125, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Lorenz Goette, 2007. "Do workers work more if wages are high? Evidence from a randomized field experiment," Natural Field Experiments 00240, The Field Experiments Website.
- Goeree, Jacob K. & Offerman, Theo, 2003. "Winner's curse without overbidding," European Economic Review, Elsevier, vol. 47(4), pages 625-644, August.
- Charles R. Plott & Kathryn Zeiler, 2005. "The Willingness to Pay–Willingness to Accept Gap, the "Endowment Effect," Subject Misconceptions, and Experimental Procedures for Eliciting Valuations," American Economic Review, American Economic Association, vol. 95(3), pages 530-545, June.
- Kagel, John H & Harstad, Ronald M & Levin, Dan, 1987. "Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study," Econometrica, Econometric Society, vol. 55(6), pages 1275-1304, November.
- Maskin, Eric S & Riley, John G, 1984.
"Optimal Auctions with Risk Averse Buyers,"
Econometrica, Econometric Society, vol. 52(6), pages 1473-1518, November.
- J. Riley & E. Maskin, 1981. "Optimal Auctions with Risk Averse Buyers," Working papers 311, Massachusetts Institute of Technology (MIT), Department of Economics.
- Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
- Cox, James C & Smith, Vernon L & Walker, James M, 1988. "Theory and Individual Behavior of First-Price Auctions," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 61-99, March.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Sebastian Ebert & Daniel Wiesen, 2014.
"Joint measurement of risk aversion, prudence, and temperance,"
Journal of Risk and Uncertainty, Springer, vol. 48(3), pages 231-252, June.
- Ebert, Sebastian & Wiesen, Daniel, 2010. "Joint measurement of risk aversion, prudence and temperance," Bonn Econ Discussion Papers 20/2010, University of Bonn, Bonn Graduate School of Economics (BGSE).
- Ebert, Sebastian, 2015. "On skewed risks in economic models and experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 85-97.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Kocher, Martin G. & Pahlke, Julius & Trautmann, Stefan T., 2015.
"An experimental study of precautionary bidding,"
European Economic Review, Elsevier, vol. 78(C), pages 27-38.
- Kocher, Martin & Pahlke, Julius & Trautmann, Stefan, 2013. "An Experimental Study of Precautionary Bidding," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79690, Verein für Socialpolitik / German Economic Association.
- Vasserman, Shoshana & Watt, Mitchell, 2021. "Risk aversion and auction design: Theoretical and empirical evidence," International Journal of Industrial Organization, Elsevier, vol. 79(C).
- Sebastian Ebert & Daniel Wiesen, 2014.
"Joint measurement of risk aversion, prudence, and temperance,"
Journal of Risk and Uncertainty, Springer, vol. 48(3), pages 231-252, June.
- Ebert, Sebastian & Wiesen, Daniel, 2010. "Joint measurement of risk aversion, prudence and temperance," Bonn Econ Discussion Papers 20/2010, University of Bonn, Bonn Graduate School of Economics (BGSE).
- Timo Heinrich & Thomas Mayrhofer, 2018. "Higher-order risk preferences in social settings," Experimental Economics, Springer;Economic Science Association, vol. 21(2), pages 434-456, June.
- Breaban, Adriana & van de Kuilen, Gijs & Noussair, Charles, 2016.
"Prudence, Personality, Cognitive Ability and Emotional State,"
Other publications TiSEM
9a01a5ab-e03d-49eb-9cd7-4, Tilburg University, School of Economics and Management.
- Breaban, Adriana & van de Kuilen, Gijs & Noussair, Charles, 2016. "Prudence, Personality, Cognitive Ability and Emotional State," Discussion Paper 2016-030, Tilburg University, Center for Economic Research.
- Breitmoser, Yves, 2019.
"Knowing me, imagining you: Projection and overbidding in auctions,"
Games and Economic Behavior, Elsevier, vol. 113(C), pages 423-447.
- Breitmoser, Yves, 2015. "Knowing me, imagining you: Projection and overbidding in auctions," MPRA Paper 62052, University Library of Munich, Germany.
- Breitmoser, Yves, 2016. "Knowing me, imagining you: Projection and overbidding in auctions," MPRA Paper 68981, University Library of Munich, Germany.
- Breitmoser, Yves, 2015. "Knowing me, imagining you: Projection and overbidding in auctions," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113160, Verein für Socialpolitik / German Economic Association.
- Andreas Roider & Patrick W. Schmitz, 2012.
"Auctions with Anticipated Emotions: Overbidding, Underbidding, and Optimal Reserve Prices,"
Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 808-830, September.
- Schmitz, Patrick W. & Roider, Andreas, 2007. "Auctions with Anticipated Emotions: Overbidding, Underbidding, and Optimal Reserve Prices," CEPR Discussion Papers 6476, C.E.P.R. Discussion Papers.
- Heinrich, Timo & Mayrhofer, Thomas, 2014. "Higher-order Risk Preferences in Social Settings - An Experimental Analysis," Ruhr Economic Papers 508, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Lönnqvist, Jan-Erik & Verkasalo, Markku & Walkowitz, Gari & Wichardt, Philipp C., 2015. "Measuring individual risk attitudes in the lab: Task or ask? An empirical comparison," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 254-266.
- Bartling, Björn & Netzer, Nick, 2016.
"An externality-robust auction: Theory and experimental evidence,"
Games and Economic Behavior, Elsevier, vol. 97(C), pages 186-204.
- Björn Bartling & Nick Netzer, 2013. "An externality-robust auction: theory and experimental evidence," ECON - Working Papers 153, Department of Economics - University of Zurich, revised Apr 2016.
- Björn Bartling & Nick Netzer, 2014. "An Externality-Robust Auction: Theory and Experimental Evidence," CESifo Working Paper Series 4771, CESifo.
- Peter Cramton & Emel Filiz-Ozbay & Erkut Ozbay & Pacharasut Sujarittanonta, 2012.
"Discrete clock auctions: an experimental study,"
Experimental Economics, Springer;Economic Science Association, vol. 15(2), pages 309-322, June.
- Peter Cramton & Emel Filiz-Ozbay & Erkut Ozbay & Pacharasut Sujarittanonta, 2010. "Discrete Clock Auctions: An Experimental Study," Papers of Peter Cramton 10dca, University of Maryland, Department of Economics - Peter Cramton, revised 2010.
- Peter Cramton & Emel Filiz-Ozbay & Erkut Ozbay & Pacharasut Sujarittanonta, 2012. "Discrete Clock Auctions: An Experimental Study," Papers of Peter Cramton 12cfosdca, University of Maryland, Department of Economics - Peter Cramton, revised 2012.
- Oliver Kirchkamp & Wladislaw Mill, 2019. "Spite vs. risk: explaining overbidding," CESifo Working Paper Series 7631, CESifo.
- Haering, Alexander, 2021. "Framing decisions in experiments on higher-order risk preferences," Ruhr Economic Papers 913, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- 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.
- Breitmoser, Yves, 2017. "Knowing Me, Imagining You:," Rationality and Competition Discussion Paper Series 36, CRC TRR 190 Rationality and Competition.
- Wedad J. Elmaghraby & Elena Katok & Natalia Santamaría, 2012. "A Laboratory Investigation of Rank Feedback in Procurement Auctions," Manufacturing & Service Operations Management, INFORMS, vol. 14(1), pages 128-144, January.
- Martin G. Kocher & Stefan T. Trautmann, 2013.
"Selection Into Auctions For Risky And Ambiguous Prospects,"
Economic Inquiry, Western Economic Association International, vol. 51(1), pages 882-895, January.
- Martin G. Kocher & Stefan T. Trautmann, 2010. "Selection into auctions for risky and ambiguous prospects," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-06, School of Economics, University of East Anglia, Norwich, UK..
- Joyce Delnoij & Kris Jaegher, 2020. "Competing first-price and second-price auctions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 69(1), pages 183-216, February.
- Kirchkamp, O. & Reiss, J.P. & Sadrieh, A., 2008. "A pure variation of risk in private-value auctions," Research Memorandum 050, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Oliver Kirchkamp & J. Philipp Reiß, 2019. "Heterogeneous bids in auctions with rational and boundedly rational bidders: theory and experiment," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(4), pages 1001-1031, December.
More about this item
Keywords
precautionary bidding; prudence; auction; experiment;All these keywords.
JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
NEP fields
This paper has been announced in the following NEP Reports:- NEP-EXP-2010-08-21 (Experimental Economics)
- NEP-GTH-2010-08-21 (Game Theory)
- NEP-UPT-2010-08-21 (Utility Models and Prospect Theory)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lmu:muenec:11743. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tamilla Benkelberg (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.