overbidding in auctions. As a workhorse we use the second-price all-pay and the first-price winner-pay auction. Both risk and …In this paper we use an experiment to compare a theory of risk aversion and a theory of spite as an explanation for … spite can be used to rationalize deviations from risk neutral equilibrium bids in auctions. We exploit that equilibrium …

We present results from a series of experiments that allow us to measure overbidding and, in particular, underbidding …

We present results from a series of experiments that allow us to measure overbidding and, in particular, underbidding …

First-price auction experiments find often substantial overbidding which is typically related to risk aversion. We … introduce a model where some bidders use constrained 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 valuations are low. We test this model with …

Overbidding in auctions has been attributed to e.g. risk aversion, loser regret, level-k, and cursedness, relying on …

be risk averse, (ii) the bidders can have heterogeneous risk preferences, and (iii) the auction can have a binding … reserve price. Our analysis reveals that the premium has an intricate joint effect on risk sharing and expected revenue, which … in general benefits risk averse bidders. When the seller is more risk averse than the pivotal bidder - a condition often …

We analyze security-bid auctions in which two risk-neutral sellers compete for risk-averse bidders. Sellers face a … risk-averse, all equilibria are symmetric. Meanwhile, when they are heterogeneously risk-averse, there is always an … equilibrium in which one seller chooses a steeper family to serve the more-risk-averse bidders, while the other chooses a flatter …