Topics

Rational Bidding in Auctions

Procedural Explanations for Overbidding

Levels of Rationality

Bidding Heuristics and Transparency

Rational Bidding under Dutch and First-Price Auctions

History and Notes

Rational Prices in English, Dutch and First-price Auctions

Auction with Uncertainty

Rational Bidding under Uncertainty

The Winner’s Curse and Anchoring and Adjusting

History and Notes

Rational Explanations for the Winner’s Curse

Biographical Note: Matthew Rabin

Thought Questions

References

Advanced Concept: Bayesian Nash Equilibrium and Bidding

under Uncertainty