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. The name is absent2. Trade Openness and Volatility
3. The name is absent
4. On the origin of the cumulative semantic inhibition effect
5. The name is absent
6. Antidote Stocking at Hospitals in North Palestine
7. The name is absent
8. Types of Cost in Inductive Concept Learning
9. Recognizability of Individual Creative Style Within and Across Domains: Preliminary Studies
10. Poverty transition through targeted programme: the case of Bangladesh Poultry Model