Going, Going, Wrong: a Test of the Level-K (and Cognitive Hierarchy) Models of Bidding Behaviour
Sign-up at: https://cess-nuffield.nuff.ox.ac.uk/events/colloquium/itzhak-rasooly-university-of-oxford/
Following the success of level-k reasoning at explaining behaviour in a variety of settings, theorists have begun to apply the level-k model to auctions. While level-k theory is reasonably well developed, there are few empirical tests of the theory in the literature, and those tests that do exist fail to sharply distinguish the theory from its leading rival, Bayesian Nash Equilibrium. In this talk, I show how the predictions of the theories can be disentangled through two very different auction structures. I then propose an experiment that is designed to test which theory (if either) can explain actual bidding behaviour.
Date: 13 October 2020, 14:00
Venue: Talk will be held via Zoom
Speaker: Itzhak Rasooly (University of Oxford)
Organising department: Nuffield College
Organiser: Noah Bacine (University of Oxford)
Organiser contact email address: noah.bacine@nuffield.ox.ac.uk
Host: Nuffield College (University of Oxford)
Part of: CESS Colloquium Series
Booking required?: Recommended
Booking email: cess-lab@nuffield.ox.ac.uk
Audience: Members of the University only
Editor: Noah Bacine