Behavioral biases are more pronounced for individuals with lower cognitive abilities. This paper examines what connection if any there is between cognitive ability and bidding strategy in second price auctions. Despite truthful revelation being a weakly dominant strategy, previous experiments have consistently observed overbidding, which makes use of such auctions for inferring homegrown value problematic. Examining the effect of cognitive ability is important as it may help identify when one can reliably recover values from bids. The results indicate that more cognitively able subjects behave in closer accordance with theory, and that cognitive ability partially explains heterogeneity in bidding behavior.

中文翻译：

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第二次拍卖中的认知能力和投标行为:一项实验研究

对于认知能力较低的人，行为偏见更为明显。本文考察了第二价格拍卖中认知能力与投标策略之间的联系（如果有的话）。尽管真实披露是一种弱优势策略，但之前的实验一直观察到出价过高，这使得利用此类拍卖来推断本土价值存在问题。检查认知能力的影响很重要，因为它可能有助于确定何时可以可靠地从投标中恢复价值。结果表明，具有更多认知能力的受试者的行为更接近于理论，并且认知能力部分解释了投标行为的异质性。