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Bidding Strategies Of Sequential First Price Auctions Programmed By Experienced Bidders

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Author Info

  • Tibor Neugebauer

    (University Hannover)

Abstract

This paper considers bidding automata programmed by experienced subjects in sequential first price sealed bid auction experiments. These automata play against each other in computer tournaments. The risk neutral subgame perfect Nash equilibrium strategy of the independent private value model serves as a benchmark. The equilibrium strategy does not describe any of the heterogeneous automata programs submitted by subjects and does not always perform better than average in the tournament.

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File URL: http://128.118.178.162/eps/exp/papers/0503/0503007.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Experimental with number 0503007.

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Length: 32 pages
Date of creation: 25 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpex:0503007

Note: Type of Document - pdf; pages: 32
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Web page: http://128.118.178.162

Related research

Keywords: Experimental Economics; First-Price Sealed-Bid Auctions; Sequential Auctions; Independent Private Value Model; Finite Automata;

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References

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Citations

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Cited by:
  1. Tibor Neugebauer & Javier Perote, 2005. "Theory And Misbehavior Of First-Price Auctions: The Importance Of Information Feedback In Experimental Markets," Experimental 0503008, EconWPA.
  2. Neugebauer, Tibor & Pezanis-Christou, Paul, 2007. "Bidding behavior at sequential first-price auctions with(out) supply uncertainty: A laboratory analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 55-72, May.
  3. Neugebauer, Tibor & Selten, Reinhard, 2006. "Individual behavior of first-price auctions: The importance of information feedback in computerized experimental markets," Games and Economic Behavior, Elsevier, vol. 54(1), pages 183-204, January.
  4. Tibor Neugebauer & Javier Perote, 2008. "Bidding ‘as if’ risk neutral in experimental first price auctions without information feedback," Experimental Economics, Springer, vol. 11(2), pages 190-202, June.

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