Going...going...wrong: a test of the level-k (and cognitive hierarchy) models of bidding behaviour
In this paper, we design and implement an experiment aimed at testing the level-k model of auctions. We begin by asking which (simple) environments can best dis entangle the level-k model from its leading rival, Bayes-Nash equilibrium. We find two environments that are particularly suited to this pu...
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| Format: | Working paper |
| Language: | English |
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University of Oxford
2022
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