Anticipated Loser Regret in Third Price Auctions

Emel Filiz Ozbay and Erkut Y. Ozbay, Economics Letters 107(2), 217-219, May .

Abstract:

Losing the auction at an affordable price generates loser regret. In third price auctions if bidders anticipate loser regret, then in line with the experimental findings, in a symmetric equilibrium the bids are more than the risk neutral Nash equilibrium.

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