Do French student really bid sincerely?

Nicolas Jacquemet (1, 2) , Stephane Luchini (3) , Robert-Vincent Joule (4) , Jason Shogren (5)

1 CES - Centre d'économie de la Sorbonne
2 PSE - Paris School of Economics
3 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille
4 LPS - Laboratoire de Psychologie Sociale
5 Departement Economy and Finance, University of Wyoming

Do French Students really bid sincerely in real and hypothetical incentive compatible auctions? Recent evidence suggests they do, which goes counter to most observed bidding behavior in the
United States, and supports the idea that cultural differences may explain bidding behavior more than economic circumstances. Herein we run a robustness check by exploring bidding behavior in classic Vickrey auction for real and hypothetical values in the two largest cities (Paris and Lyon). Two striking results emerge–(1) French students bid sincerely; and (2) no hypothetical bias exists.

Keywords: Auctions; Demand revelation; Experimental valuation; Hypothetical bias

Domains: Economics and Finance

Nicolas Jacquemet, Stephane Luchini, Robert-Vincent Joule, Jason Shogren. Do French student really bid sincerely?. 2008. ⟨halshs-00277282⟩