Silver medal for Peter Katuščák and Miroslav Zajíček in the competition The Prize of the Rector for the Best Scientific Paper
KIE was awarded by a “Silver medal” in the competition “The Prize of the Rector for the Best Scientific Paper” for a paper “Does feedback really matter in one-shot first-price auctions?” by Peter Katuščák, Fabio Michelucci and Miroslav Zajíček. The paper was published in the Journal of Economic Behavior & Organization, Volume 119, November 2015, Pages 139–152.
Does the type of posterior feedback affect how people decide in one-shot environments? We revisit this question in first-price auction markets. We consider three feedback types: minimal (only knowing whether winning or not), loser (also knowing the winning bid) and winner (knowing the second highest bid if winning). Filiz-Ozbay and Ozbay (2007) find that loser as opposed to minimal or winner feedback increases bids. We use three novel protocols and additionally replicate theirs. Using a sample of 624 subjects, we find that bidders’ ex ante knowledge of posterior feedback type has no systematic effect on the average bid/value ratios.