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Impulse balance equilibrium and feedback in first price auctions

  • Ockenfels, Axel
  • Selten, Reinhard

Experimental sealed-bid first-price auctions with private values in which feedback on the losing bids is provided yield lower revenues than auctions where this feedback is not given. The concept of weighted impulse balance equilibrium, which is based on a principle of ex post rationality and incorporates a concern for social comparison, captures the data.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 51 (2005)
Issue (Month): 1 (April)
Pages: 155-170

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Handle: RePEc:eee:gamebe:v:51:y:2005:i:1:p:155-170
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  19. Alvin E. Roth & Axel Ockenfels, . "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," Papers on Strategic Interaction 2002-32, Max Planck Institute of Economics, Strategic Interaction Group.
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