Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320274 
Year of Publication: 
2024
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 19 [Issue:] 4 [Year:] 2024 [Pages:] 1543-1579
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
We study the existence of efficient auctions in private value settings in which some bidders form their expectations about the distribution of their competitor's bids based on the accessible data from past similar auctions consisting of bids and ex post values. We consider steady states in such environments with a mix of rational and data-driven bidders, and we allow for correlation across bidders in the signal distributions about the ex post values. After reviewing the working of the approach in second-price and first-price auctions, we establish our main result that there is no efficient auction in such environments.
Subjects: 
analogy-based expectations
auctions
Belief formation
efficiency
JEL: 
D44
D82
D90
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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