Experience Weighted Attraction in the First Price Auction and Becker Degroot Marschak

Fordham University Department of Economics Discussion Paper No. 2008-04

39 Pages Posted: 4 Mar 2008 Last revised: 26 May 2008

See all articles by Duncan James

Duncan James

Fordham University

Derrick Reagle

Fordham University - Department of Economics

Date Written: February 1, 2008

Abstract

In this paper we explore the performance of Experience Weighted Attraction (EWA) in two different auction institutions: First Price Sealed Bid, and Becker-DeGroot-Marschak. Our results suggest that learning has some promise as a possible explanation for previously documented cross-institutional choice anomalies usually attributed to risk aversion. Additionally, we present results on the likely econometric (ir)recoverability of EWA parameters in these institutions.

Keywords: Auctions, Risk Aversion, Learning, Experience Weighted Attractions

Suggested Citation

James, Duncan and Reagle, Derrick, Experience Weighted Attraction in the First Price Auction and Becker Degroot Marschak (February 1, 2008). Fordham University Department of Economics Discussion Paper No. 2008-04. Available at SSRN: https://ssrn.com/abstract=1100988 or http://dx.doi.org/10.2139/ssrn.1100988

Duncan James (Contact Author)

Fordham University ( email )

United States

Derrick Reagle

Fordham University - Department of Economics ( email )

Bronx, NY 10458
United States

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