lnu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Cross-game learning and cognitive ability in auctions
Linnaeus University, School of Business and Economics, Department of Economics and Statistics (NS).ORCID iD: 0000-0002-8973-1410
Technische Universität Berlin, Germany.
University of Vienna, Austria;CESifo Munich, Germany;University of Gothenburg, Sweden.
CESifo Munich, Germany;University of Munich, Germany.
2024 (English)In: Experimental Economics, ISSN 1386-4157, E-ISSN 1573-6938, Vol. 27, p. 80-108Article in journal (Refereed) Published
Abstract [en]

Overbidding in sealed-bid second-price auctions (SPAs) has been shown to be persistent and associated with cognitive ability. We study experimentally to what extent cross-game learning can reduce overbidding in SPAs, taking into account cognitive skills. Employing an order-balanced design, we use first-price auctions (FPAs) to expose participants to an auction format in which losses from high bids are more salient than in SPAs. Experience in FPAs causes substantial cross-game learning for cognitively less able participants but does not affect overbidding for the cognitively more able. Vice versa, experiencing SPAs before bidding in an FPA does not substantially affect bidding behavior by the cognitively less able but, somewhat surprisingly, reduces bid shading by cognitively more able participants, resulting in lower profits in FPAs. Thus, ‘cross-game learning’ may rather be understood as ‘cross-game transfer’, as it has the potential to benefit bidders with lower cognitive ability whereas it has little or even adverse effects for higher-ability bidders.

Place, publisher, year, edition, pages
Springer, 2024. Vol. 27, p. 80-108
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-120360DOI: 10.1007/s10683-023-09789-8ISI: 000945336800001Scopus ID: 2-s2.0-85149370558OAI: oai:DiVA.org:lnu-120360DiVA, id: diva2:1752059
Available from: 2023-04-20 Created: 2023-04-20 Last updated: 2024-03-13Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records

Giebe, Thomas

Search in DiVA

By author/editor
Giebe, Thomas
By organisation
Department of Economics and Statistics (NS)
In the same journal
Experimental Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 79 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf