%0 Journal Article
%T Cluster detection in laboratory auction data: A model-based approach
%A Romeu Andr¨¦s
%J Panoeconomicus
%D 2011
%I Economists' Association of Vojvodina
%R 10.2298/pan1104473r
%X The benchmark risk-averse equilibrium model does not explain some of the outcomes obtained in experiments with first-price auctions. Nonetheless, the presence of non-linear bidding and the wide dispersion of bids have received little attention in the literature. I focus on these issues and revisit previous laboratory evidence with the help of model-based clustering techniques. The rejection of equilibrium models is found to be mostly due to the significance of non-linear bidding rules and the unexplained heterogeneity. With the use of a mixture model, the observations are classified into four groups or clusters. Significant differences between individuals and clusters are found, but so is a persistent within individual variation, which leads us to conclude that subjects do not commit to one particular bidding strategy and alternate across several processes.
%K clustering
%K experimental auctions
%K non-linear bidding
%U http://www.doiserbia.nb.rs/img/doi/1452-595X/2011/1452-595X1104473R.pdf