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| Zeynep Kantur and Kerim Keskin |
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| ''On (mis-)perception of probabilities in first-price sealed-bid auctions'' |
| ( 2019, Vol. 39 No.1 ) |
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| We study a two-stage probability weighting model [see Tversky and Fox, 1995] in a first-price sealed-bid auction. We present the unique symmetric equilibrium and provide some experimental support for our model. |
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| Keywords: First-price auctions, Overbidding, Probability misperception, Subjective probability weighting |
JEL: D8 - Information, Knowledge, and Uncertainty: General
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| Manuscript Received : Apr 16 2018 | | Manuscript Accepted : Mar 28 2019 |
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