A Comment on “Can Relaxation of Beliefs Rationalize the Winner's Curse?: An Experimental Study”

Miguel Costa-Gomes, Makoto Shimoji

Research output: Contribution to journalArticlepeer-review


IVANOV,LEVIN, AND NIEDERLE claim that the results from their common-value second-price auction experiment casts a doubt on beliefs-based models as explanations for the winner’s curse. In this note, we first argue that ILN’s theoretical arguments are misleading (Section 2). Wethen show that beliefs-based models do not necessarily imply ILN’s predictions and are compatible with some observations (Sections 3 and 4). We also discuss other points (Section 5).
Original languageEnglish
Pages (from-to)375-383
Number of pages9
Issue number1
Publication statusE-pub ahead of print - 18 Feb 2015


  • Beliefs-based models
  • Common-value auctions
  • Experiments

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