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We introduce a new method of varying risk that bidders face in first-price and second-price private value auctions. We find that decreasing bidders’ risk in first-price auction reduces the degree of overbidding relative to the risk-neutral Bayesian Nash equilibrium prediction.This finding is...
Persistent link: https://www.econbiz.de/10005209903
We introduce a new method of varying risk that bidders face in first-price and second-price private value auctions. We find that decreasing bidders’ risk in first-price auction reduces the degree of overbidding relative to the risk-neutral Bayesian Nash equilibrium prediction.This finding is...
Persistent link: https://www.econbiz.de/10011202018
We analyze first-price equilibrium bidding behavior of capacity-constrained firms in a sequence of two procurement auctions. In the model, firms with a cost advantage in completing the project auctioned off at the end of the sequence may enter the unfavored first auction hoping to lose it....
Persistent link: https://www.econbiz.de/10005209859
We experimentally investigate if theoretically superior non-monotonic repayment contracts yield superior results in the laboratory. We find replacing standard debt contracts with repayment-equivalent non-monotonic contracts increases entrepreneurial income by 170% and total surplus by 30%.
Persistent link: https://www.econbiz.de/10005670186
We introduce a new method of varying the risk that bidders face in first-price private value auctions. We find that decreasing bidders' risk significantly reduces the degree of overbidding relative to the risk-neutral Bayesian-Nash equilibrium prediction. This implies that risk a?ects bidding...
Persistent link: https://www.econbiz.de/10005090580
In this paper a selection theory for stochastic games is developed. The theory itself is based on the ideas of Harsanyi and Selton to select equilibria for games in standard form. We introduce several possible definitions for the stochastic tracing procedure, an extension of the linear tracing...
Persistent link: https://www.econbiz.de/10005510311
This article builds on the call of various authors (e.g. George & Jones, 2000; Mitchell & James,2001; Rousseau & Fried, 2001) for a better representation of time in theory-building andresearch in organizational behavior (OB). It proposes a radical temporalist approach to the study of OB which combines a...
Persistent link: https://www.econbiz.de/10005510312
Under a k-approval scoring rule each agent attaches a score of one to his k most preferred alternatives and zero to the other alternatives. The rule assigns the set of alternatives with maximal score. Agents may extend preferences to sets in several ways: they may compare the worst alternatives,...
Persistent link: https://www.econbiz.de/10005510313
Competition in the emerging multimedia market currently focuses on setting standards for storing, retrieving, processing, (de)compressing, and transmitting information. Each multimedia system or architecture combines several standards, some proprietary. This paper uses selected insights from...
Persistent link: https://www.econbiz.de/10005510314
This paper investigates exceptional phases of stock market cycles. Defined in Pagan and Sossounov (2003) as unusual, they are detected as outliers in the historical distribution. Moreover, this study completes the growing literature on stock market bulls and bears in several aspects. First,it...
Persistent link: https://www.econbiz.de/10005510315