dc.contributor.advisor Kara, Tarık en_US dc.contributor.author Keskin, Kerim en_US dc.date.accessioned 2016-01-08T18:23:58Z dc.date.available 2016-01-08T18:23:58Z dc.date.issued 2011 dc.identifier.uri http://hdl.handle.net/11693/15745 dc.description Ankara : The Department of Economics, İhsan Doğramacı Bilkent University, 2011. en_US dc.description Thesis (Master's) -- Bilkent University, 2011. en_US dc.description Includes bibliographical references leaves 23-24. en_US dc.description.abstract Overbidding in first-price sealed-bid auctions is a well-known result in the en_US auction theory literature. For the possible reasons behind this phenomenon, economists provided many explanations; such as risk aversion, regret theory, and subjective probability weighting. However, for subjective probability weighting to explain overbidding, the probability weighting function (PWF) is needed to be underweighting all probabilities. Such a function is not in accord with PWFs in the prospect theory literature as it suggests a specific function which satisfies certain properties. In this paper we investigate, to what extent prospect theory is able to explain overbidding by using a linear PWF satisfying all of the axiomatic properties (Currim and Sarin, 1989). Moreover, we introduce a non-zero reference point, fully utilizing prospect theory. Our results show that, subjective probability weighting alone is unable to explain overbidding. However, with the non-zero reference point assumption, we obtain partial overbidding. dc.description.statementofresponsibility Keskin, Kerim en_US dc.format.extent vii, 32 leaves en_US dc.language.iso English en_US dc.rights info:eu-repo/semantics/openAccess en_US dc.subject First-price auctions en_US dc.subject Subjective probability weighting en_US dc.subject Prospect theory en_US dc.subject Reference point en_US dc.subject Overbidding en_US dc.subject.lcc HF5476 .K37 2011 en_US dc.subject.lcsh Auctions--Mathematical models. en_US dc.subject.lcsh Game theory. en_US dc.subject.lcsh Prices--Mathematical models. en_US dc.title First price auctions under prospect theory with linear probability weighting en_US dc.type Thesis en_US dc.department Department of Economics en_US dc.publisher Bilkent University en_US dc.description.degree M.S. en_US
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