کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
970725 1479539 2012 5 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
It is not just escalation: The one dollar game revisited
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
It is not just escalation: The one dollar game revisited
چکیده انگلیسی

This paper examines the one-dollar auction game ruling out escalation. The aim of the paper is to understand if players’ expectations about competitors’ moves are strong enough to induce at least one player to bid more than the auctioned euro. Any other bid represents an expected loss for the bidder, so he maximises his own payoff by choosing a bid, which produces a null expected payoff. The empirical results and the analysis based on them support theoretical findings. It is possible that the winner pays more than €1 to get €1 because of his expectations about competitors’ bids and because of his indifference over a certain interval. The results are symptoms of some risk aversion. In an English auction escalation leads to this result, but when escalation is ruled out, expectations and indifference of preferences can lead to the same result.


► The paper modifies the dollar auction.
► A characterisation for the Nash equilibrium is derived.
► The model shows that bidding positive amounts are rational.
► The experiment shows that also overbidding may be rational.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: The Journal of Socio-Economics - Volume 41, Issue 4, August 2012, Pages 434–438
نویسندگان
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