Cursed Equilibrium Revisited

Empirical as well as experimental evidence strongly suggests that bidders in common value auctions typically do not conform to the requirements of perfect rationality. Eyster and Rabin (2005) develop a theory and an equilibrium concept - x-cursed equilibrium - for bounded rational bidding in common value auctions (among other situations), and also present some experimental evidence supporting the theory. This paper comments on these findings of an experiment conducted at the University of Bergen. In the experiment, participants often demonstrate behaviour that is beyond the bounds set by the x-cursed equilibrium theory, and I present an alternative theory that better explains the experimental findings.common value auctions; winner's curse; bounded rationality; experiments.

Levelling the Field through Scoring Auctions

This paper considers how price auctions compare with two-dimensional bidding on price and quality, when bidders have comparative advantages. Two-dimensional bids are evaluated by a scoring rule decided by the auctioneer and three auction types are evaluated: a) a scoring auction reflecting the auctioneer's true preferences; b) a scoring auction with 'optimal' distortion of quality in the scoring rule; and c) a price-only auction with optimal quality threshold. The main findings are: 1) while the auctioneer always prefers the scoring auction, bidders may favour the price auction to the scoring auction and vice versa, depending on underlying conditions of the type space and cost parameters; and 2) the auctioneer can exploit firms' comparative advantages to level the field. An optimal scoring auction can, in some circumstances, extract all rent from bidders, leaving the auctioneer with all the e¢ ciency gain from the bidding process. There even exists a knife-edge situation where the auctioneer can extract all rent when using his true preferences as the scoring rule.scoring auctions; private values; comparative advantages.

The Age of the Universe and the Cosmological Constant Determined from Cosmic Microwave Background Anisotropy Measurements

If Omega_tot = 1 and structure formed from adiabatic initial conditions then the age of the Universe, as constrained by measurements of the cosmic microwave background (CMB), is t_0=14.0 +/- 0.5 Gyr. The uncertainty is surprisingly small given that CMB data alone constrain neither h nor Omega_Lambda significantly. It is due to the tight (and accidental) correlation, in these models, of the age with the angle subtended by the sound horizon on the last--scattering surface and thus with the well-determined acoustic peak locations. If we assume either the HST Key Project result h = 0.72 \pm .08 or simply that h > 0.55, we find Omega_Lambda > 0.4 at 95% confidence--another argument for dark energy, independent of supernovae observations. Our analysis is greatly simplified by the Monte Carlo Markov chain approach to Bayesian inference combined with a fast method for calculating angular power spectra.Comment: 5 pages, including 2 figures and one table final published versio

Exclusivity and Bidding for Premium Broadcasting Rights

Often, we observe that some TV channels are distributed on several platforms, and by several distributors on the same platform, while others are distributed exclusively by one distributor. In this paper, we analyse a TV channelel's incentives for choosing exclusive distribution versus full distribution. We then proceed by studying if bidding for premium content (e.g., broadcasting rights to football) influences the incentives for choosing exclusive distribution. We show that absent of premium content, the channel has incentives to choose exclusive distribution, but the existence of premium con- tent dramatically reduces these incentives, and full distribution is the likely outcome.Exclusive dealing; auctions; football; media.

1/S-expansion study of spin waves in a two-dimensional Heisenberg antiferromagnet

We study the effects of quantum fluctuations on excitation spectra in the two-dimensional Heisenberg antiferromagnet by means of the 1/S expansion. We calculate the spin-wave dispersion and the transverse dynamical structure factor up to the second order of 1/S in comparison with inelastic neutron scattering experiments. The spin-wave energy at momentum $(\pi,0)$ is found to be about 2% smaller than that at $(\pi/2,\pi/2)$ due to the second-order correction. In addition, we study the dimensional crossover from two dimensions to one dimension by weakening exchange couplings in one direction. It is found that the second-order correction becomes large with approaching the quasi-one dimensional situation and makes the spin-wave energy approach to the des Cloizeaux-Pearson boundary for $S=1/2$. The transverse dynamical structure factor is also calculated up to the second order of 1/S. It is shown that the intensity of spin-wave peak is strongly reduced while the intensity of three-spin-wave continuum becomes large and exceeds that of the spin-wave peak in the quasi-one dimensional situation.Comment: 20 pages, 6 figures, revised text, added curves in Figs. 3 and 6 for J'/J=0.075 and corrected typos in Table

Organic farming and multicriteria decisions: An economic survey

Organic food production is a sphere where decision making is multi-facetted and complex. This applies to producers, political decision makers and consumers alike. This paper provides an overview of the economic methods that can aid such multi criteria decision making. We first provide an outline of the many different Multi-Criteria Analysis (MCA) techniques available and their relative advantages and disadvantages. In addition, theoretical and practical problems related to the use of Cost-Benefit Analysis (CBA) and MCA respectively are briefly discussed. We then review the MCA literature on case studies on organic farming. Based on this review we provide directional markers for future research where MCA may possibly be applied and adapted in order to provide useful knowledge and support for decision makers in the context of organic farming

Mortality in organic free-range chickens and molecular characterization of the involved pathogens

Longitudinal investigations on causes of mortality were carried out at one organic layer farm with four flocks of Lohman Brown and Lohman White chickens producing table eggs. All flocks were housed separately. One flock of each breed were followed from September 2001 to August 2002. Post mortem examinations were performed on a total of 16% of the dead chickens over the entire period. Of these 346 (96%) of the Lohmann Brown and 315 (91%) of the Lohmann White chickens were subjected for bacteriology. High mortality rates, 91% and 63% were observed in Lohman Brown and Lohman White chickens, respectively and were found to be due to infections with mainly Pasteurella multocida, Erysipelothix rhusiopathia and Escherichia coli. E. rhusiopathia, P. multocida and E. coli were isolated from 46%, 19% and 17%, respectively of the Lohmann Brown chickens. In the flock of Lohmann White chickens P. multocida and E. coli were isolated from 46% and 15%, respectively while E. rhusiopathia was not recorded. P. multocida and E. rhusiopathia isolates were characterized by Restriction Endonuclease Analysis (REA), Restriction Fragment Length Polymorphism (RFLP) and Pulse Field Gel Electrophoresis (PFGE). It was demonstrated that all the P. multocida isolates were genotypic identical over time. The E. rhusiopathia isolates obtained were also identical. It was concluded that the outbreaks caused by P. multocida and E. rhusiopathia were clonal and these two pathogens may cause severe losses in free-range chickens