Kirchkamp, Oliver; Reiß, J. Philipp - 2006
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ically related to risk aversion. We introduce a model where some bidders use con-
strained linear bids. As with risk aversion … this leads to overbidding if valuations are
high, but in contrast to risk aversion the model predicts underbidding if …: Auction, Experiment, Overbidding, Underbidding, Risk-Aversion.
(JEL C92, D44)
1 Introduction
First-price sealed bid auctions …