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. Delivering job search services in rural labour markets: the role of ICT
3. An Interview with Thomas J. Sargent
4. The name is absent
5. The name is absent
6. The name is absent
7. Better policy analysis with better data. Constructing a Social Accounting Matrix from the European System of National Accounts.
8. A Rare Presentation of Crohn's Disease
9. The name is absent
10. The technological mediation of mathematics and its learning