Star-shaped probability weighting functions and overbidding in first-price auctions

DOI10.1016/j.econlet.2009.04.016zbMath1178.91067OpenAlexW2033248968MaRDI QIDQ1046218

Nicolas Treich, Olivier Armantier

Publication date: 21 December 2009

Published in: Economics Letters (Search for Journal in Brave)

Full work available at URL: http://publications.ut-capitole.fr/2350/1/armantier_2350.pdf

zbMATH Keywords

auctionsnon-expected utilityrisk aversionprobability weighting functionoverbidding

Mathematics Subject Classification ID

Utility theory (91B16) Auctions, bargaining, bidding and selling, and other market models (91B26)

Related Items (7)

Inverse S-shaped probability weighting functions in first-price sealed-bid auctions ⋮ Optimal bidding in auctions from a game theory perspective ⋮ Belief elicitation in experiments: Is there a hedging problem? ⋮ Anticipated loser regret in third price auctions ⋮ Learning to bid: the design of auctions under uncertainty and adaptation ⋮ Cumulative prospect theory preferences in rent-seeking contests ⋮ Star-shaped probability weighting functions and overbidding in first-price auctions

Cites Work

• Quantal response equilibrium and overbidding in private-value auctions
• Star-shaped probability weighting functions and overbidding in first-price auctions
• Risk aversion in the theory of expected utility with rank dependent probabilities
• Rank- and sign-dependent linear utility models for finite first-order gambles
• Advances in prospect theory: cumulative representation of uncertainty
• Nonlinear behavior in sealed bid first price auctions
• An axiomatization of cumulative prospect theory
• Four notions of mean-preserving increase in risk, risk attitudes and applications to the rank-dependent expected utility model
• Lotteries, insurance, and star-shaped utility functions
• A Generalization of the Quasilinear Mean with Applications to the Measurement of Income Inequality and Decision Theory Resolving the Allais Paradox
• A Theory of Auctions and Competitive Bidding
• The Probability Weighting Function
• The Dual Theory of Choice under Risk
• A new axiomatization of rank-dependent expected utility with tradeoff consistency for equally likely outcomes
• Rank-dependent preferences without ranking axioms

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