Crawford, Vincent P.; Kugler, Tamar; Neeman, Zvika; … - In: Journal of the European Economic Association 7 (2009) 2-3, pp. 377-387
This paper begins to explore behavioral mechanism design, replacing equilibrium by a model based on "level-k" thinking, which has strong support in experiments. In representative examples, we consider optimal sealed-bid auctions with two symmetric bidders who have independent private values,...