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A Learning Approach to Auctions

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  • Hon-Snir, Shlomit
  • Monderer, Dov
  • Sela, Aner

Abstract

We analyze a repeated first-price auction in which the types of the players are determined before the first round. It is proved that if every player is using either a belief-based learning scheme with bounded recall or generalized fictitious play learning scheme, then for sufficiently large time, the players' bid are in equilibrium in the one-shot auction in which the types are commonly known.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 82 (1998)
Issue (Month): 1 (September)
Pages: 65-88

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Handle: RePEc:eee:jetheo:v:82:y:1998:i:1:p:65-88

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Web page: http://www.elsevier.com/locate/inca/622869

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  1. McAfee R. Preston & Vincent Daniel, 1993. "The Declining Price Anomaly," Journal of Economic Theory, Elsevier, vol. 60(1), pages 191-212, June.
  2. Fudenberg, Drew & Levine, David K, 1993. "Self-Confirming Equilibrium," Econometrica, Econometric Society, vol. 61(3), pages 523-45, May.
  3. Roth, Alvin E. & Erev, Ido, 1995. "Learning in extensive-form games: Experimental data and simple dynamic models in the intermediate term," Games and Economic Behavior, Elsevier, vol. 8(1), pages 164-212.
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  5. Leslie M. Marx & Jeroen M. Swinkels, 1996. "Order Independence for Iterated Weak Dominance," Discussion Papers 1066R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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  7. Elmar WOLFSTETTER, 1994. "Auctions: An Introduction," SFB 373 Discussion Papers 1994,13, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
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Citations

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Cited by:
  1. Berger, Ulrich, 2007. "Brown's original fictitious play," Journal of Economic Theory, Elsevier, vol. 135(1), pages 572-578, July.
  2. Mitropoulos, Atanasios, 2001. "Learning under minimal information: An experiment on mutual fate control," Journal of Economic Psychology, Elsevier, vol. 22(4), pages 523-557, August.
  3. Johannes Horner & Julian Jamison, 2006. "Private Information in Sequential Common-Value Auctions," Discussion Papers 1422, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Berger, Ulrich, 2008. "Learning in games with strategic complementarities revisited," Journal of Economic Theory, Elsevier, vol. 143(1), pages 292-301, November.
  5. Fernando Louge & Frank Riedel, 2010. "Evolutionary Stability of First Price Auctions," Working Papers 435, Bielefeld University, Center for Mathematical Economics.
  6. Rene Saran & Roberto Serrano, 2010. "Ex-post regret learning in games with fixed and random matching: The case of private values," Working Papers 2010-11, Instituto MadrileƱo de Estudios Avanzados (IMDEA) Ciencias Sociales.
  7. Hailu, Atakelty & Schilizzi, Steven & Thoyer, Sophie, 2005. "Assessing the performance of auctions for the allocation of conservation contracts: Theoretical and computational approaches," 2005 Annual meeting, July 24-27, Providence, RI 19478, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Dawid, Herbert, 1999. "On the convergence of genetic learning in a double auction market," Journal of Economic Dynamics and Control, Elsevier, vol. 23(9-10), pages 1545-1567, September.
  9. Johannes Horner & Julian Jamison, 2003. "Private Information in Repeated Auctions," Levine's Bibliography 666156000000000108, UCLA Department of Economics.
  10. Saran Rene & Serrano Roberto, 2010. "Ex-Post Regret Learning in Games with Fixed and Random Matching: The Case of Private Values," Research Memorandum 032, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  11. Holzman, Ron & Kfir-Dahav, Noa & Monderer, Dov & Tennenholtz, Moshe, 2004. "Bundling equilibrium in combinatorial auctions," Games and Economic Behavior, Elsevier, vol. 47(1), pages 104-123, April.
  12. Atanasios Mitropoulos, 2001. "Learning Under Little Information: An Experiment on Mutual Fate Control," Game Theory and Information 0110003, EconWPA.
  13. Metzger, Lars Peter, 2014. "Invader strategies in the war of attrition with private information," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 160-166.

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