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This paper reports a new and significant experimental demonstration that market participants adjust their bids towards the price observed in previous market periods when - by design - individuals' values should not be affiliated with the market price. This demonstration implies that market...
Persistent link: https://www.econbiz.de/10003769896
We use laboratory experiments to compare allocation rules in uniform price divisible good auctions. 'Standard' and … that the standard allocation rule is particularly vulnerable to collusive equilibria. -- experiment ; uniform price auction … ; multi-unit auction ; divisible-good auction ; allocation rule ; communication …
Persistent link: https://www.econbiz.de/10003898823
We investigate the role of information feedback in rent-seeking games with two different contest structures. In the stochastic contest a contestant wins the entire rent with probability equal to her share of rent-seeking expenditures; in the deterministic contest she receives a share of the rent...
Persistent link: https://www.econbiz.de/10009618920
We experimentally investigate how reputational concerns affect behavior in repeated Tullock contests by comparing expenditures of participants interacting in fixed groups with the expenditures of participants interacting with randomly changing opponents. When participants receive full...
Persistent link: https://www.econbiz.de/10011456852
; and rst-price, second-price, and all-pay auctions. Second, we establish revenue equivalence of these auction mechanisms in … auctions. Finally, we identify an optimal mechanism and its implementation by means of reserve prices in lottery and auction …
Persistent link: https://www.econbiz.de/10010360354
results have important implications for the design of IPO auctions. -- IPO ; uniform price auction ; divisible goods ; share …
Persistent link: https://www.econbiz.de/10003321810
reverse auction. Shares are allocated endogenously, depending on the suppliers ́bids. The procedure obtains dual sourcing by … than a standard auction for sole sourcing. We also show that providers reveal their costs truthfully and that the …
Persistent link: https://www.econbiz.de/10011448760
We study the effects of affirmative action through endogenous set-asides. We propose a share auction for dual sourcing … first-price auction. We also show that our main result is robust to variations of our benchmark model, including the …
Persistent link: https://www.econbiz.de/10012161704
Social preferences and social influence effects ("peer effects") are well documented, but little is known about how peers shape social preferences. Settings where social preferences matter are often situations where peer effects are likely too. In a gift-exchange experiment with independent...
Persistent link: https://www.econbiz.de/10010257221
Using an experiment with incentivized decisions of groups in the economics laboratory, I investigate the effect of group diversity on group risk taking. I measure econometrically the effects of various aspects of subjects' diversity: nationality, language, university degree and gender. I find...
Persistent link: https://www.econbiz.de/10010187863