Star-Shaped Probability Weighting Functions and Overbidding in First-Price Auctions

Armantier, Olivier and Treich, Nicolas (2009) Star-Shaped Probability Weighting Functions and Overbidding in First-Price Auctions. TSE Working Paper, n. 09-024

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Official URL: http://tse-fr.eu/pub/22143

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.

Item Type: Monograph (Working Paper)
Language: English
Date: March 2009
Uncontrolled Keywords: probability weighting function, auctions, overbidding, non-expected utility, risk aversion
JEL codes: C70 - General
C92 - Laboratory, Group Behavior
D44 - Auctions
D81 - Criteria for Decision-Making under Risk and Uncertainty
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 18 Jan 2012 06:00
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:22143
URI: http://publications.ut-capitole.fr/id/eprint/3199

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