In common value auction experiments, individual judgment errors significantly alter market outcomes relative to standard economic formulations. Experienced bidders show sensitivity to the strategic considerations underlying the auction but not to item valuation considerations. Nash equilibrium models accurately characterize auctions with small numbers of bidders_(3-4). However, auctions with large numbers_(6-7) produce more aggressive bidding, resulting in negative profits, the winner's curse. Public informationreducing value uncertainty raises seller's revenues in the absence of a winner's curse, but reduces revenue in its presence. Similarities between laboratory and field data from outer continental shelf lease sales are discussed.
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