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. 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 …

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

second-price auctions. Overbidding is a robust finding in second- price auctions, and spite among bidders has been advanced … where bidders have preferences regarding both, the payoffs of other bidders and the seller's revenue. Overbidding is optimal … seller on overbidding. We conclude that overbidding is not an artefact of the standard experimental implementation of second …

feedback. In earlier experimental work an overbidding above the risk neutral Nash equilibrium has been frequently reported. Our … data provide evidence that this overbidding regularity can be a consequence of the standard information feedback in auction …

Bayesian posteriors. We show alternative models based upon risk aversion and anticipated regret can’t explain these price …