Resource title

Out-of equilibrium bids in auctions: wrong expectations or wrong bids

Resource image

image for OpenScout resource :: Out-of equilibrium bids in auctions: wrong expectations or wrong bids

Resource description

Deviations from equilibrium bids in auctions can be related to inconsistent expectations with correct best replies (see Eyster and Rabin, 2005; Crawford and Iriberri, 2007) or correct expectations but small (perhaps quantal-response) mistakes in best replies (see Goeree et al., 2002). To distinguish between these two explanations we use a novel experimental procedure and study expectations together with best replies. We extensively test the internal validity of this setup. We find that deviations from equilibrium bids do not seem to be due to wrong expectations but due to deviations from a best reply.

Resource author

Oliver Kirchkamp, J. Philipp Reiss

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25709

Resource license

Adapt according to the presented license agreement and reference the original author.