A COMMENT ON 'CAN RELAXATION OF BELIEFS RATIONALIZE THE WINNER'S CURSE?: AN EXPERIMENTAL STUDY'

摘要

Ivanov, Levin, and Niederle (2010) use a common-value second-price auction experiment to reject beliefs-based explanations for the winner's curse. ILN's conclusion, however, stems from the misuse of theoretical arguments. Beliefs-based models are even compatible with some observations from ILN's experiment.