Tobias Br�nner

Publications (2)0 Total impact

• Article: Bidding in common value fair division games: The winner's curse or even worse?

  Alice Becker, Tobias Br�nner
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  ABSTRACT: A unique indivisible commodity with an unknown common value is owned by group of individuals and should be allocated to one of them while compensating the others monetarily. We study the so-called fair division game (G�th, Ivanova-Stenzel, K�nigstein, and Strobel (2002, 2005)) theoretically and experimentally for the common value case and compare our results to the corresponding common value auction. Whereas symmetric risk neutral Nash equilibria are rather similar for both games, behavior differs strikingly. Implementing auctions and fair division games in the lab in a repeated setting under first- and second-price rule, we find that overall behavior is much more dispersed for the fair division games than for the auctions. Winners' profit margins and shading rates are on average slightly lower for the fair division game. Moreover, we find that behavior in the fair division game separates into extreme over- and underbidding.
  Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Jena Economic Research Papers. 01/2009;
• Article: Liquidity and Competition in Unregulated Markets

  Caroline Fohlin, Thomas Gehrig, Tobias Br�nner
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  ABSTRACT: Despite reputedly widespread market manipulation and insider trading, we find surprisingly high liquidity and low transactions costs for actively traded securities on the NYSE between 1890 and 1910, decades before SEC regulation. Moreover, market makers behave largely as predicted in theory: stocks with liquid markets and competitive market makers (cross-trading at the rival Consolidated Exchange) trade with substantially lower quoted bid-ask spreads and with less anti-competitive behavior (price discreteness). Effective spreads, illiquidity, and volume all improve monotonically over time. Notably, the asymmetric information component of effective spreads increases in relative and absolute terms from 1900 to 1910.
  Collegio Carlo Alberto, Carlo Alberto Notebooks. 01/2008;