We prove existence and uniqueness of equilibrium in a 2-bidder asymmetric first price auction with affiliated values. The techniques used to prove uniqueness are different from the ones used in analyses of private values environments. Moreover the proof of existence is constructive. For...

We propose a simple theoretical model of supervised learning that is potentially useful to interpret a number of empirical phenomena. The model captures a basic tradeoff between sheltering the child from the consequences of his mistakes, and allowing him to learn from experience. We characterize...