This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Rewards, Experience and Decision Costs in First Price Auctions

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Smith, Vernon L
Walker, James M

Additional information is available for the following registered author(s):

Abstract

Consistent with a model of asymmetric risk aversion, subjects in first price auctions consistently bid above the risk neu tral Nash prediction. It has been argued that this is due to low opportun ity cost of deviating from the risk neutral bid. The authors increase opportunity cost (and payoff levels) by factors of 0, 1, 5, 10, and 20 from the normal levels generating payoffs up to $250 for risk neutra l subjects and observe an insignificant increase in the slope of individual bid functions. The RMSE of bids declines significantly. T his is consistent with a reward/decision cost model of bidding behavior. Copyright 1993 by Oxford University Press.

Download Info
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 31 (1993)
Issue (Month): 2 (April)
Pages: 237-45
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:oup:ecinqu:v:31:y:1993:i:2:p:237-45

Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Email:
Web page: http://ei.oupjournals.org/

Order Information:
Web: http://www.oup.co.uk/journals

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Other versions of this item:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Jacob K. Goeree & Charles A. Holt & Thomas R. Palfrey, 2000. "Quantal Response Equilibrium and Overbidding in Private-Value Auctions," Virginia Economics Online Papers 345, University of Virginia, Department of Economics. [Downloadable!]
    Other versions:
  2. Paul Pezanis-Christou & Andres Romeu, 2002. "Structural Inferences from First-Price Auction Experiments," UFAE and IAE Working Papers 531.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  3. David J. Cooper et al., 1999. "Gaming against Managers in Incentive Systems: Experimental Results with Chinese Students and Chinese Managers," American Economic Review, American Economic Association, vol. 89(4), pages 781-804, September. [Downloadable!] (restricted)
  4. Mark Van Boening & Stephen Rassenti & Vernon Smith, 1998. "Numerical Computation of Equilibrium Bid Functions in a First-Price Auction with Heterogeneous Risk Attitudes," Experimental Economics, Springer, vol. 1(2), pages 147-159, September. [Downloadable!] (restricted)
  5. Edward Balistreri & Gary McClelland & Gregory Poe & William Schulze, 2001. "Can Hypothetical Questions Reveal True Values? A Laboratory Comparison of Dichotomous Choice and Open-Ended Contingent Values with Auction Values," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(3), pages 275-292, March. [Downloadable!] (restricted)
  6. Marcos Singer, 2002. "Una Introduccion A La Teoria Y La Practica De Las Subastas," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 5(1), pages 3-29. [Downloadable!]
  7. Martin G. Kocher & Peter Martinsson & Martine Visser, 2006. "Does Stake Size matter for Cooperation and Punishment?," Tinbergen Institute Discussion Papers 06-104/1, Tinbergen Institute. [Downloadable!]
    Other versions:
  8. David J. Cooper & John H. Kagel & Wei Lo, 1999. "Gaming Against Managers in Incentive Systems: Experimental Results with Chinese Students and Chinese Managers," Artefactual Field Experiments 0034, The Field Experiments Website. [Downloadable!]
  9. Spiliopoulos, Leonidas, 2008. "Humans versus computer algorithms in repeated mixed strategy games," MPRA Paper 6672, University Library of Munich, Germany. [Downloadable!]
  10. Camerer, Colin F. & Hogarth, Robin M., 1999. "The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework," Working Papers 1059, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  11. Charles Noussair & Ping Wu, 2006. "Risk tolerance in the present and the future: an experimental study," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(6), pages 401-412. [Downloadable!]
  12. Santos-Pinto, Luís & Park, Young-Joon, 2004. "Forecasts of relative performance in tournaments: evidence from the field," MPRA Paper 3144, University Library of Munich, Germany, revised 22 Mar 2007. [Downloadable!]
  13. Timothy Cason & Daniel Friedman, 1999. "Learning in a Laboratory Market with Random Supply and Demand," Experimental Economics, Springer, vol. 2(1), pages 77-98, August. [Downloadable!] (restricted)
  14. Teck-Hua Ho & Keith Weigelt, 2005. "Trust among Strangers," Game Theory and Information 0504006, EconWPA. [Downloadable!]
  15. Kirchkamp, Oliver & Reiss, J. Philipp & Sadrieh, Abdolkarim, 2008. "A pure variation of risk in private-value auctions," Research Memoranda 050, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  16. Paul Healy & John Ledyard & Charles Noussair & Harley Thronson & Peter Ulrich & Giulio Varsi, 2007. "Contracting inside an organization: An experimental study," Experimental Economics, Springer, vol. 10(2), pages 143-167, June. [Downloadable!] (restricted)
  17. Tanga McDaniel & E. Rutström, 2001. "Decision Making Costs and Problem Solving Performance," Experimental Economics, Springer, vol. 4(2), pages 145-161, October. [Downloadable!] (restricted)
  18. Kirchkamp, Oliver & Reiss, J. Philipp & Sadrieh, Abdolkarim, 2006. "A pure variation of risk in first-price auctions," Research Memoranda 058, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
    Other versions:
  19. Uri Gneezy, 2003. "The W effect of incentives," Levine's Bibliography 666156000000000315, UCLA Department of Economics. [Downloadable!]
  20. Timothy C. Haab & Ju-Chin Huang & John C. Whitehead, . "Are Hypothetical Referenda Incentive Compatible? A Comment," Working Papers 9708, East Carolina University, Department of Economics. [Downloadable!]
    Other versions:
  21. Alma Cohen & Liran Einav, 2005. "Estimating Risk Preferences from Deductible Choice," NBER Working Papers 11461, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? About 1000 journals are listed on RePEc.

This page was last updated on 2009-11-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.