Obvious Ex Post Equilibrium
- (pp. 230-34)
AbstractI 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.
CitationLi, Shengwu. 2017. "Obvious Ex Post Equilibrium." American Economic Review, 107 (5): 230-34. DOI: 10.1257/aer.p20171029
- C70 Game Theory and Bargaining Theory: General
- D44 Auctions
- D82 Asymmetric and Private Information; Mechanism Design