We investigate the relevance of conditional reasoning and belief formation for the occurrence of the winner's curse with the help of two experimental manipulations. First, we compare results from a very simple common-value auction game with results from a transformed version of this game that...

We investigate how the anchoring effect-a well-established cognitive bias-influences the full distribution of subjective beliefs. While prior research extensively examines the impact of anchoring and other biases on point estimates, their effect on higher moments of the distribution remains...