The Influence of Outside Options on Second-Price Auction Outcomes

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.

Autorentext

Born in Graz, Austria. Bachelor's and master's degree at Karl-Franzens-University of Graz with focus on finance and management.

Klappentext

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.