Serrano, Roberto; Saran, Rene - Centro de Estudios Monetarios y Financieros (CEMFI) - 2007
We apply stochastic stability to study the evolution of bidding behaviour in private-value 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...