Analysis on Impact of Individual’s Bid Propensity on Optimal Bidding of “Naive-Rational” Bidders

摘要

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.