We report an experiment on a decision task by SAMUELSON and BAZERMAN (1985). Subjects submit a bid for an item with an unknown value. A winner s curse phenomenon arises when subjects bid too high and make losses. Learning direction theory can account for this. However, other influences on...

In spring 2000, the British government auctioned off licences for Third Generation mobile telecommunications services. In the preparation of the auction, two designs involving each a hybrid of an English and a sealed-bid auction were suggested by the government: a discriminatory and a uniform...

We study the behavioral dynamics of limit orders in simultaneous experimental call-auction markets with multiple multiperiod lived securities. As analytical decision variable we use excess bids; the number of submitted bids minus the number of offers. The feedback variable is (excess) return....