Instructions

For this game, you will participate in a series of auctions in small groups. In each auction, you will bid on a fictitious item, which will hold some independent personal value assigned at random to each individual participant, from the interval of [0, 100]. In each round, each group member will simultaneously write down a bid for the item. You will then compare your bid with the bids of your other group members. The person with the highest bid wins and earns the items personal value. However, they still need to pay a price for the item. The price the winner pays is equal to the second highest bid in the group. The winner’s payoff is equal to their personal item value minus this price. The payoff of those who do not win is zero.

You will participate in three auctions and your value for the item will vary across auction rounds. In each round, the value of the fictitious item for each individual player will be equal to an independently and randomly assigned number ranging from 0 to 100.