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Analysis on Impact of Individual’s Bid Propensity on Optimal Bidding of “Naive-Rational” Bidders
School of Economics and Management, Southwest Jiaotong University, Chengdu, China
School of Economics and Management, Southwest Jiaotong University, Chengdu, China
Foreign Language Department, Chengdu Textile College, Chengdu, China
- 1 School of Economics and Management, Southwest Jiaotong University, Chengdu, China
- 2 School of Economics and Management, Southwest Jiaotong University, Chengdu, China
- 3 Foreign Language Department, Chengdu Textile College, Chengdu, China
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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.
KeywordsNaiveRationalEmotional UtilityMonetary UtilityJudge ValueIndividual’s Bid Propensity
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