IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v119y2025ics2214804325001478.html

Refusing to lose: Reciprocity in complete information first-price sealed-bid auctions

Author

Listed:
  • Mannahan, Rachel

Abstract

I characterize the pure strategy equilibria in complete information, first-price sealed-bid auctions when bidders have reciprocity preferences. While the equilibria under selfish preferences persist, two additional types of equilibria arise under reciprocity. There is an equilibrium with negative reciprocity in which a bidder with a low value may refuse to lose by overbidding to win the auction. There is also an equilibrium with positive reciprocity in which several bidders collude by submitting a tying bid at a low price.

Suggested Citation

  • Mannahan, Rachel, 2025. "Refusing to lose: Reciprocity in complete information first-price sealed-bid auctions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 119(C).
    • Handle: RePEc:eee:soceco:v:119:y:2025:i:c:s2214804325001478
    DOI: 10.1016/j.socec.2025.102483
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214804325001478
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socec.2025.102483?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:119:y:2025:i:c:s2214804325001478. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.