RANE predictions, the bid ceilings of both Strong and Weak bidders are significantly lower
than predicted in all treatments.
Table 4 - Bid Shading and Bid Ceilings.
RBSa |
Relative deviations from bid ceilings | |||||
RNNE |
RANE | |||||
Strong |
Weak |
Strong |
Weak |
Strong |
Weak | |
LOW |
.61 |
.52 |
.10** |
.12** |
-.08** |
-.09** |
(9 obs) |
(.11) |
(.08) |
(.21) |
(.21) |
(.21) |
(.21) |
MIX |
.72 |
.54 |
.00 |
.05 |
-.19** |
-.19** |
(9 obs) |
(.09) |
(.11) |
(.24) |
(.23) |
(.24) |
(.23) |
SYM |
.37 |
.34 |
.06* |
.07** |
-.11** |
-.10** |
(6 obs) |
(.08) |
(.07) |
(.16) |
(.12) |
(.16) |
(.12) |
Note: Standard deviations in parenthesis; a Relative Bid Shading;
** Significant at α = .05; * Significant at α = .10 (one-tailed)
3.1.3. Revenues
Table 5 reports the observed and expected revenues. In all treatments, observed revenues are
significantly greater than those expected in the RNNE (at α = .02, one-tailed), but are not
different from those expected in the RANE. The observation that revenues in SYM are closer
to the RANE than to the RNNE predictions is in line with the received literature that explains
overbidding in symmetric first-price auctions in terms of constant relative risk aversion.
Since the conclusions remain unchanged for the last 25 rounds of the experiment, we infer
that both the behavior of Strong and Weak bidders and the revenues generated by the different
treatments are consistent with the basic predictions of the Nash equilibrium models studied.
14
More intriguing information
1. The name is absent2. FASTER TRAINING IN NONLINEAR ICA USING MISEP
3. Why Managers Hold Shares of Their Firms: An Empirical Analysis
4. Two-Part Tax Controls for Forest Density and Rotation Time
5. Human Rights Violations by the Executive: Complicity of the Judiciary in Cameroon?
6. On the Relation between Robust and Bayesian Decision Making
7. The WTO and the Cartagena Protocol: International Policy Coordination or Conflict?
8. The Dynamic Cost of the Draft
9. Institutions, Social Norms, and Bargaining Power: An Analysis of Individual Leisure Time in Couple Households
10. THE CO-EVOLUTION OF MATTER AND CONSCIOUSNESS1