@techreport{36652e71a0654baab8c06b8e9170d605,
title = "Bidding Behavior given Point and Interval Values in a Second-price Auction",
abstract = "Although rational choice theory presumes people have a point estimate of their willingness to pay (WTP) for a good or service, the idea of coherent arbitrariness suggests they have an interval of values. Herein we explore bidding behavior in a second-price auction in which bidders have point or interval values and point or interval bidding. We find bidders bid rationally: (i) when bidders have a point value but are asked to state an interval bid, they choose to bid as an interval with the point value as the mean of the interval; (ii) bidders who had a value interval but are asked to bid as a point estimate bid the expected value from the interval; and (iii) bidders with an interval value and who bid an interval again bid sincerely.",
keywords = "second price auction, bidding behavior, preference elicitation, interval values",
author = "Prasenjit Banerjee and Shogren, {Jason F.}",
year = "2013",
month = may,
day = "9",
language = "English",
series = "International Workshop on Mechanism Design and the Environment",
publisher = "University of Manchester",
number = "EDP-1310",
type = "WorkingPaper",
institution = "University of Manchester",
}