Lecture 24 - Asymmetric Information: Auctions and the Winner's Curse

Yale Open Courses ECON 159: Game Theory by William Sheppard

Jun 8, 201801:02:28Education

We discuss auctions. We first distinguish two extremes: common values and private values. We hold a common value auction in class and discover the winner’s curse, the winner tends to overpay. We discuss why this occurs a...

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