Miguel A. Costa‐Gomes; Shimoji, Makoto - In: Econometrica 83 (2015) 01, pp. 375-383
Ivanov, Levin, and Niederle (2010) use a common‐value second‐price auction experiment to reject beliefs‐based explanations for the winner's curse. ILN's conclusion, however, stems from the misuse of theoretical arguments. Beliefs‐based models are even compatible with some observations...