The Influence of Outside Options on Second-Price Auction Outcomes. Experimental Economics

      Аннотация: This work deals with the study of subjects’ behavior in an auction and attempts to contribute a small part of understanding to the big picture of this topic by targeting the following two research questions: Is there a difference between outside options for all or a lottery for an outside option for one “loser” with equivalent expected value? Does group size influence bids in a second price auction? To answer these questions we conducted an experiment at the Max Jung laboratory, sited at Graz University.

Ключевые слова: Behavioral Economics, Experiment, outside option, second-price auction, auction, lottery outside option, group size, Risk Preferences, Hold and Laury, influence of outside options