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Ask a question about: Auctions
Respond to the question: Independence of private information?

01/24/2003 01:45 AM by J. Lee; RE: Independence of private information
When modelling standard auctions, private information of bidders (that is basically about their valuations - of course, their valuations can also be private or interdependent) can be modelled as either independent or affiliated(affiliation is a similar, but stronger concept of correlation). If modelled as independent, the assumpition plays some important roles (basically, it makes game-theoretic economic analysis simpler), however, it could be a bad assumption depending on auctions modelled. If interested, please see, for example, a textbook 'Auction Theory'(2002, Academic Press) by V. Krishna. [Manage messages]

01/14/2003 05:31 AM by Karl; Independence of private information
how important is the assumption that the private information of bidders (in any standard auction) is independent? Is this a good assumption? [View full text and thread]