scholarly journals Going... going... wrong: a test of the level-k (and cognitive hierarchy) models of bidding behaviour

2021 ◽  
Author(s):  
Itzhak Rasooly
Keyword(s):  
Cognitive Hierarchy ◽  
Bidding Behaviour

scholarly journals Going, going, gone: competitive decision-making in Dutch auctions

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Murray Bennett ◽  
Rachel Mullard ◽  
Marc T. P. Adam ◽  
Mark Steyvers ◽  
Scott Brown ◽  
...  
Keyword(s):  
Decision Making ◽  
Subjective Expected Utility ◽  
Group Setting ◽  
Step Rate ◽  
Dutch Auction ◽  
Maximum Price ◽  
Rate Step ◽  
Current Price ◽  
Starting Price ◽  
Bidding Behaviour

AbstractIn a Dutch auction, an item is offered for sale at a set maximum price. The price is then gradually lowered over a fixed interval of time until a bid is made, securing the item for the bidder at the current price. Bidders must trade-off between certainty and price: bid early to secure the item and you pay a premium; bid later at a lower price but risk losing to another bidder. These properties of Dutch auctions provide new opportunities to study competitive decision-making in a group setting. We developed a novel computerised Dutch auction platform and conducted a set of experiments manipulating volatility (fixed vs varied number of items for sale) and price reduction interval rate (step-rate). Triplets of participants ($$N=66$$ N = 66 ) competed with hypothetical funds against each other. We report null effects of step-rate and volatility on bidding behaviour. We developed a novel adaptation of prospect theory to account for group bidding behaviour by balancing certainty and subjective expected utility. We show the model is sensitive to variation in auction starting price and can predict the associated changes in group bid prices that were observed in our data.

Johanna Seibt’s Process Ontology of Categorical Inference: On Nomological Axiomatics and Category Projection

Metaphysica ◽  
2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ekin Erkan
Keyword(s):  
Limit Point ◽  
Formal Structure ◽  
Empirical Science ◽  
Semantic Structure ◽  
Structural Level ◽  
Process Ontology ◽  
Representational System ◽  
Cognitive Hierarchy ◽  
Different Levels

Abstract Drawing from a Sellarsian realist-naturalist epistemology, we trace different levels of cognitive hierarchy procedures through which a representational system learns to update its own states and improve its ‘map-making’ capabilities from pre-conscious operations which modulate base-localization functions, to patterns of epistemic revision and integration at the conceptual and theoretical levels, producing a nomological double of its world. We show how ontological theorization becomes diachronically coordinated with and constrained by empirical science, and how the formal-quantitative kernel of scientific theories corresponds to qualitative-conceptual determinations at the structural level. Following Johanna Seibt’s characterization of ontology as a theory of categorial inference, we trace the preservation of inferential semantic structure across ontological theories in relation to model languages and provide provisional indications to coordinate Seibt’s account with a convergent realist assessment of systematic modeling, defining the epistemological conditions for articulating the preservation of formal structure in theories toward a limit-point of enquiry.

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