This article explores the effect of a subset of symmetric bidders joining to bid together. Possible applications include mergers, collusion and joint-bidding arrangements. The change produces a “strong” party with a more advantageous value distribution than the remaining “weak”...

We consider second-price common-value auctions with an increasing number of bidders. We define a strategy of bidder i to be (ex-post, weakly) asymptotically dominated if there is another strategy for i that does, in the limit, as well against any sequence of strategies of iʼs opponents, and...

We study three alternative implementations of the Vickrey multi-unit demand auction: Vickrey's original static sealed-bid auction and two dynamic/Ausubel auctions, with and without public dropout information reported during the auction. Although implemented by a weaker solution concept, behavior...

This paper reports the results of a series of experiments designed to test whether and to what extent individuals succumb to the conjunction fallacy. Using an experimental design of Tversky and Kahneman (1983), it finds that given mild incentives, the proportion of individuals who violate the...

We study how resale affects auctions with costly entry in a model where bidders possess two-dimensional private information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. Our...