Star-shaped probability weighting functions and overbidding in first-price auctions

C-Tier
Journal: Economics Letters
Year: 2009
Volume: 104
Issue: 2
Pages: 83-85

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

There is a debate about whether risk aversion is the main source of overbidding in a first-price independent private values auction. As an alternative, we adopt a non-expected utility framework, and identify an interpretable property on the probability weighting function which always induces overbidding.

Technical Details

RePEc Handle
repec:eee:ecolet:v:104:y:2009:i:2:p:83-85
Journal Field
General
Author Count
2
Added to Database
2026-01-29