Diego Aycinena (Assistant Professor, Universad Francisco Marroquin)
This project investigates auctions in which there is a cost to participate. One line of research investigates entry decisions into auctions, and tests the fit of a Pure Strategy Entry Equilibrium model based on a cutoff value. The second line compares first price sealed bid and ascending auctions, asking about entry under the two mechanisms. The third line investigates bidding behavior after entry decisions have been made. The studies vary the task subjects face. In one case, subjects are told the number of bidders and the cost of entry, and subjects are asked the (private) value they must have in order for them to choose to enter. In another set of treatments, subjects are given the number of bidders and their value, and asked the price below which they would enter.