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Complexity and bidder behavior in iterative auctions

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  • Katerina Sherstyuk

    (University of Hawaii at Manoa)

Abstract

We extend the finite automata approach to evaluate complexity of strategies in iterative adjustment processes such as auctions. Intuitively, a strategy's complexity is equal to the number of different contingencies in which qualitatively different behaviors are prescribed. Complexity may explain bidder choice of strategies in multi-unit iterative auctions.

Suggested Citation

  • Katerina Sherstyuk, 2011. "Complexity and bidder behavior in iterative auctions," Economics Bulletin, AccessEcon, vol. 31(4), pages 2769-2776.
    • Handle: RePEc:ebl:ecbull:eb-11-00040
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    References listed on IDEAS

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    More about this item

    Keywords

    ascending auctions; complexity; finite automata; experimental evidence;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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