Obvious Ex Post Equilibrium
American Economic Review · 2017 · Volume 107 · Issue 5
Abstract
I propose a new solution concept, obvious ex post (OXP) equilibrium. This is a formal standard of cognitive simplicity for mechanisms, in settings with interdependent values. Under some standard assumptions, the ascending auction has an efficient OXP equilibrium. I discuss a decision theoretic foundation for OXP mechanisms.
Keywords
Game Theory and Bargaining Theory: General, Auctions, Asymmetric and Private Information, Mechanism Design
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