TITLE:
Analysis on Impact of Individual’s Bid Propensity on Optimal Bidding of “Naive-Rational” Bidders
AUTHORS:
Yiqing Tang, Weijie Yuan, Cuihong Luo
KEYWORDS:
Naive, Rational, Emotional Utility, Monetary Utility, Judge Value, Individual’s Bid Propensity
JOURNAL NAME:
Modern Economy,
Vol.8 No.7,
July
27,
2017
ABSTRACT: This paper considers the emotional factors of the
naive and rational bidder in the auctions, and introduces it in the bidder’s
utility function. We study the impact of individual’s bid propensity on optimal
bidding in the different case of “naive-rational” bidders’ value judgments by establishing
the naive and rational bidder’s comprehensive utility function including
monetary utility and emotional utility. Further, we analyze who is the last
winner in the condition of difference of individual’s bid propensity.