Table 5 -Average Seller’s Revenues (and Standard Deviation)
Observed |
RNNE |
RANE | |
LOW |
24.87 |
12.50 |
23.06 |
_______(9 obs)______ |
(4.47) |
(.74) |
(1.16) |
MIX |
18.51 |
10.61 |
21.15 |
_______(9 obs)______ |
(5.35) |
(.33) |
(.56) |
SYM |
42.47 |
33.40 |
44.53 |
_______(6 obs)______ |
(3.89) |
(.66) |
(.88) |
3.2. Nash equilibrium behavior, Empirical Best Replies and shapes
of bid functions
3.2.1. Nash Equilibrium Behavior
The plots in Figure 1 show that the average bid functions are better tracked by the RANE
prediction in the symmetric treatment than in the asymmetric treatments. In the latter,
although Strong bidders bid less aggressively than Weak bidders for equal values, they
overbid mostly at low values, which is inconsistent with the risk neutral or risk averse
equilibriumpredictionsforthesetreatments.
To assess the explanatory power of these models, we compare the Relative Squared
DeviationsfromtheRNNEandRANEbidfunctions(henceforth,RSD).WedefineRSDfor
biddertypeiinroundtas
wherebi*(v) standsfortheRNNEortheRANEbidfunctionoftypeiandthedenominatorfor
RSDit =
max<
ɪ, г , 2
∑ [bit(v) - bi*(v)]
v=0
2 2 2 2
∑[v-bi*(v)] ,∑[-bi*(v)]
v=0 v=0
fort = 1,...,100andi = S,W
themaximumpossibledeviationfromthatstrategy.
15
More intriguing information
1. El impacto espacial de las economías de aglomeración y su efecto sobre la estructura urbana.El caso de la industria en Barcelona, 1986-19962. The Macroeconomic Determinants of Volatility in Precious Metals Markets
3. Midwest prospects and the new economy
4. Menarchial Age of Secondary School Girls in Urban and Rural Areas of Rivers State, Nigeria
5. Der Einfluß der Direktdemokratie auf die Sozialpolitik
6. Text of a letter
7. Activation of s28-dependent transcription in Escherichia coli by the cyclic AMP receptor protein requires an unusual promoter organization
8. Altruism and fairness in a public pension system
9. THE CHANGING STRUCTURE OF AGRICULTURE
10. The name is absent