An Application of Prospect Theory to Privatization Problems

• In Event: Standing ePanel: Topics in Political Methodology

Brief Overview

An interview shows that type1 cares winning against each of the rival bidders while type2 care only winning an auction. We compare auctions by applying prospect theory with two types and justify the sealed-bid first-price auction in privatization.

Author

• Yumiko Baba, Aoyamagakuin