- A-Z
- Jena Economics Rese...
- Volume 2
- Out-of equilibrium ...
Out-of equilibrium bids in auctions : wrong expectations or wrong bids
- Author
- published
- Tue Mar 18 2008
- Number of discussion paper
-
2008-021
- keyword(s)
-
Auction
Expectations
Experiments
- abstract
-
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.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- experimental economics
- JEL-Classification for JER
- C92 - Laboratory, Group Behavior ; D44 - Auctions
- URN
- urn:nbn:de:urmel-f8fab353-abbd-4b5e-bb58-3d0d9df141674-00113046-15