Grimm, Veronika; Mengel, Friederike; Ponti, Giovanni; … - Staatswissenschaftliches Seminar, Wirtschafts- und … - 2006
We experimentally analyze first and second price auctions where one bidder can achieve a comparative advantage by … investment prior to the auction. We find that, as predicted by theory, bidders invest more often prior to second price auctions … than prior to first price auctions. In both auction formats bidding is more aggressive than the equilibrium prediction …