’ bid. Equilibrium behavior in the first-price auction is mostly unaffected but there are multiple equilibria in the second …- price auction. Consequently, comparative statics across price rules are equivocal. Experimentally, leaks in the first- price … auction favor second movers but harm first movers and sellers, as theoretically predicted. Low to medium leak probabilities …

-price dimensions after the auction. Both auctions theoretically implement the surplus maximizing mechanism. Our experiment confirms …

ensuing auction, leading to loss of efficiency and eliminating the revenue dominance typically observed in first …

auction framework. This game induces subjects to fall prey into the paradigm of escalation, which is driven by agents …

' bid. Equilibrium behavior in the first-price auction is mostly unaffected but there are multiple equilibria in the second …-price auction. Consequently, comparative statics across price rules are equivocal. Experimentally, leaks in the first-price auction …

An auction is externality-robust if unilateral deviations from equilibrium leave the other bidders' payoffs unaffected … externalities due to spiteful preferences, which have been used to explain overbidding in the second-price auction (SPA). Another … example are cross-shareholdings between companies that compete in an auction. We derive an auction that coincides with the SPA …

ensuing auction, leading to loss of efficiency and eliminating the revenue dominance typically observed in firstprice auctions. …

first movers bids. There is a unique equilibrium in the first-price auction and multiple equilibria in the second …-price auction. Consequently, comparative statics across price rules are equivocal. We experimentally find that in the first …-price auction, leaks benefit second movers but harm first movers and sellers. Low to medium probabilities of leak eliminate the …