Towards a competitive arousal model of decision-making: A study of auction fever in live and Internet auctions

Article Abstract:

The findings of a study of 140 Internet and live bidding, and data collected from 21 auctions across North America, reveal that emotional factors - rivalry, time pressure, social facilitation, and the first-mover advantage - that affect auctions, may also impact decision-making in organizations and other contexts. Another laboratory-based experiment to study the similarities and differences between escalation of commitment and competitive arousal also shows that both the factors may cause overbidding. The implications of these findings on decision-making are overviewed.

Management dynamics, Decision-making, Models, Decision making, Analysis, Company business management, Social facilitation

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Unfairness, anger, and spite: emotional rejections of ultimatum offers

Article Abstract:

The rejection of ultimatum offers in negotiations is adequately explained by the rejection/spite model and the fairness model which takes into consideration the role of emotions in the acceptance of offers. An economically advantageous ultimatum offer may be rejected on the grounds that one of the parties in the negotiation perceives the offer as unfair and damaging to the self-image. This affront to the self-image evokes anger and results in spite - the rejection of the advantageous offer.

Group Dynamics, Psychological aspects, Social aspects, Economic aspects, Human resource management, Negotiation, Negotiations, Interpersonal relations, Emotions, Ultimatums

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Learning to avoid the winner's curse

Article Abstract:

The winner's curse observed during auctions is defined as the losses incurred by the highest bidders due to their overestimation of the value of the acquired object. It is shown that individuals fall victim to the winner's curse even when they are given information, experience, time, varied endowments and the possibility of profitable bids aimed at helping them avoid the curse. However, these factors did succeed in reducing auction bids.

Research, Consumer behavior

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