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Bidding Strategies Of Sequential First Price Auctions Programmed By Experienced Bidders

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  • Tibor Neugebauer

    (University Hannover)

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.

Suggested Citation

  • Tibor Neugebauer, 2005. "Bidding Strategies Of Sequential First Price Auctions Programmed By Experienced Bidders," Experimental 0503007, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpex:0503007
    Note: Type of Document - pdf; pages: 32
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/exp/papers/0503/0503007.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tibor Neugebauer & Stefan Traub, 2012. "Public good and private good valuation for waiting time reduction: a laboratory study," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(1), pages 35-57, June.
    2. Neugebauer, Tibor & Pezanis-Christou, Paul, 2007. "Bidding behavior at sequential first-price auctions with(out) supply uncertainty: A laboratory analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 55-72, May.
    3. Tibor Neugebauer & Javier Perote, 2005. "Theory And Misbehavior Of First-Price Auctions: The Importance Of Information Feedback In Experimental Markets," Experimental 0503008, University Library of Munich, Germany.
    4. Paulo B. Goes & Gilbert G. Karuga & Arvind K. Tripathi, 2010. "Understanding Willingness-to-Pay Formation of Repeat Bidders in Sequential Online Auctions," Information Systems Research, INFORMS, vol. 21(4), pages 907-924, December.
    5. Tibor Neugebauer & Javier Perote, 2008. "Bidding ‘as if’ risk neutral in experimental first price auctions without information feedback," Experimental Economics, Springer;Economic Science Association, vol. 11(2), pages 190-202, June.
    6. Sascha Füllbrunn & Tibor Neugebauer, 2013. "Varying the number of bidders in the first-price sealed-bid auction: experimental evidence for the one-shot game," Theory and Decision, Springer, vol. 75(3), pages 421-447, September.
    7. Neugebauer, Tibor & Selten, Reinhard, 2006. "Individual behavior of first-price auctions: The importance of information feedback in computerized experimental markets," Games and Economic Behavior, Elsevier, vol. 54(1), pages 183-204, January.

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    More about this item

    Keywords

    Experimental Economics; First-Price Sealed-Bid Auctions; Sequential Auctions; Independent Private Value Model; Finite Automata;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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