We tested whether cognitive fusion impairs emotion differentiation and thereby mediates relations between cognitive fusion and depression and panic symptoms among 55 adults, 50.9% women). Using visual stimuli, we elicited multiple emotion states and measured emotional intensity – the subjective emotion intensity of elicited emotions, as well as emotional differentiation – the degree of co-activation of multiple negative emotions when a specific emotion was elicited. First, as hypothesised, we found that cognitive fusion predicted lower levels of emotion differentiation. In contrast, (...) as hypothesised, these effects were significantly greater than the effects of cognitive fusion on emotion intensity. Second, as predicted, MECA, but not SEI, predicted depression and panic symptoms. Finally, we found that MECA mediated the effects of cognitive fusion on depression and panic symptoms. The present findings contribute novel, preliminary empirical insight into associations between cognitive fusion, impaired emotion differentiation and mental ill-health. (shrink)

We study a first-price auction preceded by a negotiation stage with complete information, during which bidders may form a bidding ring. We prove that in the absence of externalities, the grand cartel forms in equilibrium, allowing ring members to gain the auctioned object for a minimal price. However, identity-dependent externalities may lead to the formation of small rings, as often observed in practice. Potential ring members may condition their participation on high transfer payments as a compensation for their expected externalities (...) if the ring forms. The cartel may therefore profitably exclude these bidders, although risking tougher competition in the auction. We also analyze ring efficiency in the presence of externalities, showing that a ring may prefer sending an inefficient member to the auction, if the efficient member exerts threatening externalities on bidders outside the ring, which in turn leads to a higher winning price. (shrink)