The spite motive in third price auctions

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 161
Issue: C
Pages: 71-73

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A spiteful agent losing an auction experiences negative emotions towards the winner. In line with previous experimental findings I show that the symmetric equilibrium bid of a spiteful agent in third price auctions is higher than the risk neural Nash equilibrium bid. Furthermore, it can be shown that spiteful agents bid the same way agents would who anticipate to regret their decision in equilibrium.

Technical Details

RePEc Handle
repec:eee:ecolet:v:161:y:2017:i:c:p:71-73
Journal Field
General
Author Count
1
Added to Database
2026-01-26