American Economic Review Vol. 107 No. 5 2017

Obvious Ex Post Equilibrium

Shengwu Li

Harvard Society of Fellows, 78 Mount Auburn Street, Cambridge, MA 02138 (e-mail: )

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.

DOI

10.1257/aer.p20171029

Volume

107

Issue

5

Pages

230-234

Language

en

Sources

openalex crossref

Cite

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