The equilibrium prices in asset markets, as stated by Keynes (1930), "...will be fixed at the point at which the sales of the bears and the purchases of the bulls are balanced." We propose a descriptive theory of finance explicating Keynes' claim that the prices of assets today equilibrate the...

We document that eBay bidders exhibit a biased preference for auctions with more bids, even if these are non-diagnostic of quality, creating an incentive for sellers to lower starting prices to attract early bids. We find that lowering starting prices succeeds in increasing the likelihood that...