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We propose a novel approach to the modelling of second-price Maximum-Value auctions that assumes no belief about others' behavior and no expected profit maximization. This individual decision-making model, naïve Impulse Balance Equilibrium or nIBE, deals with bidders' anticipated regrets from...
Persistent link: https://www.econbiz.de/10012896753
Overbidding in second-price auctions (SPAs) has been shown to be persistent and associated with cognitive ability. We study experimentally to what extent cross-game learning can reduce overbidding in SPAs, taking into account cognitive skills. Employing an order-balanced design, we use...
Persistent link: https://www.econbiz.de/10013314693
Persistent link: https://www.econbiz.de/10012224675
In this paper we consider equilibrium behavior in a Dutch (descending price) auction where the bidders are uninformed of their valuations with probability 1-q and can acquire information about their valuation at a positive cost during the auction. We assume that the information acquisition...
Persistent link: https://www.econbiz.de/10014196912
Agent-based simulations are performed to study adaptive learning in the context of asymmetric first-price auctions. Non-linearity of the Nash equilibrium strategies is used to investigate the effect of task complexity on adaptive learning by varying the degree of approximation the agents can...
Persistent link: https://www.econbiz.de/10014158034
The auctioning of frequency has to comply with a multitude of requirements in order to guarantee a transparent and efficient process. The German Federal Network Agency (Bundesnetzagentur) has opted for a design that provides participants with information on the highest bid after each round for...
Persistent link: https://www.econbiz.de/10014099837
In this study, we designed a delayed payment mechanism in laboratory second price auctions (SPAs) under which subjects received a cash endowment two weeks after the experiment day and had to use their own money to pay the experimental loss (if any) on the experiment day. We compared the effect...
Persistent link: https://www.econbiz.de/10012971336
Persistent link: https://www.econbiz.de/10012972801
This chapter explores the state of the emerging practice of designing markets by the use of agent-based modeling, with special reference to electricity markets and computerized (on-line) markets, perhaps including real-life electronic agents as well as human traders. The paper first reviews the...
Persistent link: https://www.econbiz.de/10014024378
In this paper we consider equilibrium behavior in a Dutch (descending price) auction where the bidders are uninformed of their valuations with probability q and can acquire information about their valuation at a positive cost during the auction. We assume that the information acquisition...
Persistent link: https://www.econbiz.de/10013109754