Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130790
Authors: 
Levin, Dan
Peck, James
Ivanov, Asen
Year of Publication: 
2015
Series/Report no.: 
Working Paper, School of Economics and Finance, Queen Mary University of London 776
Abstract: 
Through a series of decision tasks involving colored cards, we provide separate measures of Bayesian updating and non-probabilistic reasoning skills. We apply these measures to (and are the first to study) a common-value Dutch auction. This format is more salient than the strategically equivalent first-price auction and silent Dutch formats in hinting that one should condition one's estimate of the value on having the highest bid. Both Bayesian updating skills and non-probabilistic reasoning skills are shown to help subjects correct for the winner's curse, as does the saliency of the active-clock Dutch format.
Subjects: 
Bayesian updating
Non-probabilistic reasoning
Dutch auction
JEL: 
D4
D7
D8
Document Type: 
Working Paper

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