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Kos, Nenad; Messner, Matthias - 2015

We study optimal selling strategies of a seller who is poorly informed about the buyer’s value for the object. When the maxmin seller only knows that the mean of the distribution of the buyer's valuations belongs to some interval then nature can keep him to payoff zero no matter how much...

Persistent link: https://www.econbiz.de/10011298549

The Design of Ambiguous Mechanisms

Di Tillio, Alfredo; Kos, Nenad; Messner, Matthias - 2014

This paper explores the sale of an object to an ambiguity averse buyer. We show that the seller can increase his profit by using an ambiguous mechanism. That is, the seller can benefit from hiding certain features of the mechanism that he has committed to from the agent. We then characterize the...

Persistent link: https://www.econbiz.de/10010398538

The Design of Ambiguous Mechanisms

Tillio, Alfredo Di; Kos, Nenad; Messner, Matthias - CESifo - 2014

Persistent link: https://www.econbiz.de/10010889983

The design of ambiguous mechanisms

Di Tillio, Alfredo; Kos, Nenad; Messner, Matthias - 2014

Persistent link: https://www.econbiz.de/10010399062

Ambiguity aversion solves the conflict between efficiency and incentive compatibility

De Castro, Luciano I.; Yannelis, Nicholas C. - 2010

The conflict between Pareto optimality and incentive compatibility, that is, the fact that some Pareto optimal (efficient) allocations are not incentive compatible is a fundamental fact in information economics, mechanism design and general equilibrium with asymmetric information. This important...

Persistent link: https://www.econbiz.de/10010282940

Incomplete Information Games with Multiple Priors

Kajii, Atsushi; Ui, Takashi - Institute of Economic Research, Kyoto University - 2004

We present a model of incomplete information games with sets of priors. Upon arrival of private information, each player "updates" by the Bayes rule each of priors in this set to construct the set of posteriors consistent with the arrived piece of information. Then the player uses a possibly...

Persistent link: https://www.econbiz.de/10005385291

Emprical Relevance of Ambiguity in First Price Auction Models

Aryal, Gaurab; Kim, Dong-Hyuk - College of Business and Economics, Australian National … - 2013

We study the identification and estimation of first-price auction models with independent private values where bidders are risk averse and there is ambiguity about the valuation distribution. When bidders' preferences are represented by the maxmin expected utility of [Gilboa and Schmeidler,...

Persistent link: https://www.econbiz.de/10011107173

When Curiosity Kills the Profits: an Experimental Examination

Jamison, Julian; Karlan, Dean S. - EconWPA - 2005

Economic theory predicts that in a first-price auction with equal and observable valuations, bidders earn zero profits. Theory also predicts that if valuations are not common knowledge, then since it is weakly dominated to bid your valuation, bidders will bid less and earn positive profits....

Persistent link: https://www.econbiz.de/10005125581

Selection into auctions for risky and ambiguous prospects

Kocher, Martin G.; Trautmann, Stefan T. - School of Economics, University of East Anglia - 2010

We study experimentally the selection into first-price sealed-bid auctions for a risky or an ambiguous prospect. Most subjects chose to submit a bid for the risky prospect, leading to thinner markets for the ambiguous prospect. Transaction prices for both prospects were equal although subjects...

Persistent link: https://www.econbiz.de/10010571488

A Theory of Experimenters

Banerjee, Abhijit; Chassang, Sylvain; Montero, Sergio; … - 2017

-averse decision-makers, who make trade-offs between subjective expected performance and robustness. This framework accounts for … sample size is large enough or robustness is an important concern. We illustrate the practical value of such a framework by … studying the issue of rerandomization. Rerandomization creates a trade-off between subjective performance and robustness …

Persistent link: https://www.econbiz.de/10011744984