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Home | Events | Workshop on Auctions & Bargaining
Workshop

Workshop on Auctions & Bargaining


  • Series
  • Speaker(s)
    Antonio Cabrales (University College London), Ángel Hernando Veciana (Durham University Business School), Elena Katok (The University of Texas at Dallas) Peter Katuščák (RWTH Aachen University) Sebastian Schweighofer-Kodritsch (Humboldt University of Berlin), Gyula Seres (Humboldt University of Berlin) et al.
  • Field
    Organizations and Markets
  • Location
    Tinbergen Institute, room 1.01
    Amsterdam
  • Date and time

    June 28, 2019
    09:30 - 17:00

Register here.
To attend, registration is required.

Invited speakers

Antonio Cabrales (University College London)
Ángel Hernando Veciana (Durham University Business School),
Elena Katok (The University of Texas at Dallas)
Peter Katuščák (RWTH Aachen University)
Sebastian Schweighofer-Kodritsch (Humboldt University of Berlin),
Gyula Seres (Humboldt University of Berlin)
Shaul Shalvi (University of Amsterdam)
Alfred Zerres (University of Amsterdam)

Abstracts

Antonio Cabrales (University College London)
Does Pre-play Social Interaction Improve Negotiation Outcomes?

We study experimentally the impact of pre-play social interactions on negotiations. These interactions are often complex. Thus, we attempt to isolate the impact of several of its morecommon components: conversations, food, and beverages, which could be alcoholic or nonalcoholic. To do this, our subjects take part in a standardized negotiation (complex and simple) under six conditions: without interaction, interaction only, and interactions with water, wine, water and food and wine and food. We find that none of the treatments improve the outcomesover the treatment without interactions. We also study trust and reciprocity in the same context. For all-male groups, we find the same lack of superiority of interaction treatments over nointeraction. For all-female groups, some very simple social interactions have a positive impact on trust.

Gyula Seres (Humboldt University of Berlin)
Strategic Anchoring: An Experimental Test in Auctions

Anchoring is a widely observed cognitive bias triggered by an obviously irrelevant number that influences judgement. Following this line line of research, we focus on anchoring effects on strategies. In some markets including bargaining and auctions, agents are exposed to potential anchors which limit the strategy space, but do not convey information. We test for the presence of anchoring in games with an experiment in private-value first-price and silent Dutch auctions. Subjects are exposed to two anchors. For one, some treatments include a very high upper limit of bids. For two, subjects may receive a randomly allotted number before the auctions. We find evidence of anchoring bias of both types. Moreover, the interaction effects are negative, suggesting that different type of anchors weaken each other. We also find that the sign of the effect of the upper limit is context dependent as it is negative and significant in silent Dutch auctions.
Co-authored with Radosveta Ivanova-Stenzel.

Elena Katok (The University of Texas at Dallas)
Does Supplier Competition Boost Investment Incentives? An Experimental Study

In procurement settings suppliers are able to use cost saving measures prior to bidding on projects. To the extent that these measures affect bidders’ costs distributions, they also affect optimal reservation prices buyers should set in equilibrium. Therefore, in theory whether the cost saving effort is observable to buyers affects reservation prices, which in turn affect the levels of cost saving efforts. We test predictions of this model in the laboratory and find that suppliers cost saving efforts are higher than they should be in equilibrium, reservation prices are less responsive to observable cost saving effort levels, and in competitive settings cost saving effort levels go beyond what can be explained by reservation prices.
Joint work with Cuihong Li and Zhixi Wen.

Ángel Hernando Veciana (Durham University Business School)
Multi-unit Bargaining and Posted Prices

We study two-person bargaining over multiple homogeneous items when both agents have private information about their preferences and monetary transfers are possible. Our main result is that every mechanism that sat- isfies (i) dominant-strategy incentive compatibility, (ii) ex-post individual rationality and (iii) ex-post budget balance or ex-post collusion proofness can be implemented almost everywhere by posted prices. Hence, strategic robustness rules out any endogenous price formation. We also apply our re- sults to discuss the welfare consequences of requiring ex-post budget balance instead of ex-post collusion proofness.
Joint work with Martin Hagen.