Topics
Applications
Auctions
Bargaining
Experimental Economics
Forum
General Equilibrium
Napster
other
Other Topics
Prisoners Dilemma
Zero Sum Games
| | Thread and Full Text View
| 01/24/2003 01:45 AM by J. Lee; RE: Independence of private information |
When modelling standard auctions, private information of bidders (that is basically about their valuations - of course, their valuations can also be private or interdependent) can be modelled as either independent or affiliated(affiliation is a similar, but stronger concept of correlation). If modelled as independent, the assumpition plays some important roles (basically, it makes game-theoretic economic analysis simpler), however, it could be a bad assumption depending on auctions modelled. If interested, please see, for example, a textbook 'Auction Theory'(2002, Academic Press) by V. Krishna. [Manage messages]
| 01/14/2003 05:31 AM by Karl; Independence of private information |
how important is the assumption that the private information of bidders (in any standard auction) is independent? Is this a good assumption? [View full text and thread]
|
