Instructions

You have been randomly and anonymously matched with 2 other participants in an auction. Each of you is given 100 points to start.

Before bidding, you will learn the value of the object to you. The value of the object differs from participant to participant and is randomly and independently drawn from 0 to 100 points for each participant.

Next, you will privately submit a bid for the object. You can bid from 0 to 100 points. The participant with the highest bid wins the object and pays the second highest bid. In the event of a die, the winner will be chosen randomly will select the winner in the event of a tie bid and the winner will pay the highest bid other than her or his own bid.

The payoff of the winner is calculated as
Winner’s payoff = 100 points + Private value of the object to the winner - Second highest bid
The payoffs for others are the initial 100 points.

For your convenience, these instructions will remain available to you on all subsequent screens of this study.