The Bidder's Curse

We would like to thank Christopher Adams, Stefano DellaVigna, Darrell Duffie, Tomaso Duso, Tanjim Hossain, Ali Hortacsu, Daniel Kahneman, Botond K¨oszegi, David Laibson, Ted O'Donoghue, Matthew Rabin, Antonio Rangel, Uri Simonsohn, David Sraer, Adam Szeidl, Richard Zeckhauser and seminar participants at Cornell, Dartmouth, Florida State University, LBS, LSE, Stanford, Texas A&M, Yale, UC Berkeley, UC San Diego, Washington University, NBER Labor Studies meeting, at the NBER IO summer institute, SITE, Behavioral Industrial Organization conference (Berlin), and the Santa Barbara Conference on Experimental and Behavioral Economics 2008 for helpful comments. Gregory Bruich, Robert Chang, Yinhua Chen, Yiwen Cheng, Aisling Cleary, Bysshe Easton, Kimberly Fong, Roman Giverts, Cathy Hwang, Camelia Kuhnen, Andrew Lee, Pauline Leung, William Leung, Jenny Lin, Jane Li, David Liu, Xing Meng, Jeffrey Naecker, Chencan Ouyang, Charles Poon, Kate Reimer, Matthew Schefer, Mehmet Seflek, Patrick Sun, Mike Urbancic, Allison Wang, Sida Wang provided excellent research assistance. Ulrike Malmendier would like to thank the Center for Electronic Business and Commerce at Stanford GSB and the Coleman Fung Risk Management Research Center for financial support. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

• December 26, 2007