Lower price increases, the bounded rationality of bidders, and underbidding concerns in online agricultural land auctions: The Ukrainian case
Journal: Journal of Agricultural Economics
Year: 2022

Abstract Auction theory suggests that bidders follow a dominant strategy that is to submit the highest bid equal to the bidder's true valuation in an ascending price auction with independent and private values. Bidders in real‐world auctions may deviate from this strategy, resulting in either underbidding—submitting bids lower than the valuation—or overbidding—bidding an amount in excess of the real value. This study utilises data collected from online agricultural land lease auctions in Ukraine