Author(s)

Yiqing Tang¹, Weijie Yuan^1*, Cuihong Luo²

¹School of Economics and Management, Southwest Jiaotong University, Chengdu, China.
²Foreign Language Department, Chengdu Textile College, Chengdu, China.

This paper considers the emotional factors of the naive and rational bidder in the auctions, and introduces it in the bidder’s utility function. We study the impact of individual’s bid propensity on optimal bidding in the different case of “naive-rational” bidders’ value judgments by establishing the naive and rational bidder’s comprehensive utility function including monetary utility and emotional utility. Further, we analyze who is the last winner in the condition of difference of individual’s bid propensity.

Naive, Rational, Emotional Utility, Monetary Utility, Judge Value, Individual’s Bid Propensity

Tang, Y. , Yuan, W. and Luo, C. (2017) Analysis on Impact of Individual’s Bid Propensity on Optimal Bidding of “Naive-Rational” Bidders. Modern Economy, 8, 959-969. doi: 10.4236/me.2017.87067.