Examining panel data on bidding behavior in over forty second-price auction
markets with repeated trials. we observe that (i) posted prices influence
the behavior of the median naive bidder; (ii) posted prices do not affect t
he behavior of the median experienced bidder or the bidder for familiar goo
ds; and (iii) anticipated strategic behavior wanes after two trials. The re
sults suggest that while affiliation might exist in auctions for new goods,
the repeated trial design with nonprice information removes the correlatio
n of values and provides the experience that bidders need to understand the
market mechanism.