A comparison of reward processing during Becker-DeGroot-Marschak and Vickrey auctions: An ERP study.

ABSTRACT: Vickrey auctions (VA) and Becker-DeGroot-Marschak auctions (BDM) are strategically equivalent demand-revealing mechanisms, differentiated only by a human opponent in the VA, and a random-number-generator opponent in the BDM. Game parameters are such that players are incentivized to reveal their private subjective values (SV) and behavior should be identical in both tasks. However, this has been repeatedly shown not to be the case. In this study, the neural correlates of outcome feedback processing during VA and BDM were directly compared using electroencephalography. Twenty-eight healthy participants bid for household products which were then divided into high- and low-SV categories. The VA included a human opponent deception to induce a social environment, while in reality a random-number

SUBMITTER: Newton-Fenner A 

PROVIDER: S-EPMC10909440 | biostudies-literature | 2023 Sep

REPOSITORIES: biostudies-literature