The winner's curse: Conditional reasoning and belief formation

In explaining the winner's curse, recent approaches have focused on one of two cognitive processes: conditional reasoning and belief formation. We provide the first joint experimental analysis of the role of these two obstacles. First, we observe that overbidding decreases significantly between a simple common-value auction and a transformed version of this auction that does not require conditional reasoning. Second, assistance in belief formation leads to comparable behavioral changes in both games. The two effects are of similar magnitude and amplify each other when jointly present. We conclude that the combination and the interaction of the two cognitive processes in auctions lead to relatively low strategic sophistication compared to other domains. The study's focus on games' objective cognitive challenges is potentially useful for improving predictions across games and complements the common focus on behavioral models and their explanatory power

Vertical integration, market foreclosure and quality investment

We study incentives to vertically integrate in an industry with verti- cally differentiated downstream firms. Vertical integration by one of the firms increases production costs for the rival. Increased production costs negatively affects quality investment both by the integrated firm and the unintegrated rival. Quality investment by both firms decreases under any (vertical inte- gration) scenario. The decrease in quality invesment by both firms softens competition among downstream firms. By integrating first, a firm always produces the high quality good and earns higher profits. A fully integrated industry, with increased product differentiation, is observed in equilibrium. Due to increase in firm profits, social welfare under this structure is greater than under no integration.info:eu-repo/semantics/publishedVersio

Comments on kinetic equation for autocorrelation functions

The non-Markoffian kinetic equation for the one-particle momentum autocorrelation function, derived by Zwanzig and studied in great detail recently by Berne, Boon, and Rice, is analyzed in the weak coupling limit. It is shown that, in this limit, this kinetic equation remains non-Markoffian because the kernel which determines the memory effects only decays very slowly. More precisely, it tends to zero over times of the order of the relaxation time itself and not, as could be expected, over the much shorter collision time. The comparison with the more traditional approach, based on the solution of a transport equation, is also discussed.SCOPUS: re.jinfo:eu-repo/semantics/publishe

RFLP detected at the 8924 locus by a thyroglobulin cDNA probe.

SCOPUS: ar.jinfo:eu-repo/semantics/publishe