Social, Behavioral & Experimental Economics (SBEE): The Common-Probability Auction Puzzle (joint with Andy Schotter)
M. Kathleen Ngangoué, University of California Los Angeles
Monday, November 1, 2021
11:30 AM-12:45 PM
Virtual
Abstract: "This paper presents a puzzle in the behavior of experimental subjects in what we call common-probability auctions. In common-value auctions, uncertainty is defined over values while, in common-probability auctions, uncertainty is defined over probabilities. We find that in contrast to the substantial overbidding found in common-value auctions, bidding in strategically equivalent common-probability auctions is consistent with Nash-equilibrium. This difference between the two uncertain environments originates in subjects' strategic valuations of the object."
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(To attend this online event, please complete the form to receive email instructions and announcements for this and future SBEE Seminars.)
| Building: | Off Campus Location |
|---|---|
| Location: | Virtual |
| Website: | |
| Event Type: | Workshop / Seminar |
| Tags: | Economics, seminar |
| Source: | Happening @ Michigan from Department of Economics, Social, Behavioral, and Experimental Economics (SBEE) |
