| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059955 | Economics Letters | 2013 | 5 Pages |
Abstract
We experimentally study clock auctions to dissolve partnerships jointly owned by two players. Subjects are found to deviate systematically from the Nash equilibrium. We explain the bidding behaviour in terms of risk aversion and/or non-standard utility theory.
⺠We use clock auction experiments to test partnership dissolution. ⺠Players are found to deviate from the risk neutral Nash equilibrium. ⺠Risk aversion can explain bidders' deviation in ascending auction. ⺠Non-standard utility can explain overbidding in descending auction.
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Authors
Xiangdong Qin, Fangzhou Zhang,