Saran, Rene; Serrano, Roberto - Instituto de Ciencias Sociales, Instituto Madrileño de … - 2007
We apply stochastic stability to study the evolution of bidding behavior in private-values second-price, first-price and k-double auctions. The learning process has a strong component of inertia but with a small probability, the bids are modified in the direction of ex-post regrets. We identify...