Introduction

Abstract

Auctions are becoming increasingly popular throughout the economy: In addition to the online varieties, there are auctions for the sale of everything from business-to-business contracts, real estate, business models and whole companies. All these auctions, which exemplify one special form of intensely competitive negotiation, are subject to the same economic and psychological norms. More broadly, the same or similar behavioral norms apply to any negotiations between two or more parties. The study of these norms is basically what has come to be known as game theory.