Arve, Malin; Serena, Marco - In: Games 13 (2022) 3, pp. 1-12
Nash equilibrium outcome. We show that a standard level-k model may rationalize overspending in contests. This result … documented empirically, and it has been shown that, in private-value auctions, such overbidding can be rationalized by level-k … a theoretical contest environment with level-k reasoning. …