{"id":14570,"date":"2022-10-19T09:40:16","date_gmt":"2022-10-19T08:40:16","guid":{"rendered":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/?p=14570"},"modified":"2022-10-19T09:47:20","modified_gmt":"2022-10-19T08:47:20","slug":"celebrating-success-dr-matt-walker-2","status":"publish","type":"post","link":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/2022\/10\/19\/celebrating-success-dr-matt-walker-2\/","title":{"rendered":"Celebrating Success: Dr Matt Walker"},"content":{"rendered":"<p>Congratulations to Dr Matt Walker and his co-authors Ernan Haruvy (McGill) and Timo Heinrich (Hamburg) for their paper entitled &#8220;<a href=\"https:\/\/doi.org\/10.1016\/j.econlet.2022.110891\">Separating probability weighting and risk aversion in first-price auctions<\/a>&#8220;, which has recently been published in Economics Letters.<\/p>\n<p><strong>Abstract<\/strong><br \/>\nIn first price sealed-bid auctions, a power probability weighting function is observationally equivalent to a model with constant relative risk aversion. By comparing auctions with different ceilings on a computerized opponent\u2019s bid space, we can separate inverse S-shaped probability weighting as commonly used in the literature and risk-averse preferences from the distribution of observed bids. We find evidence to support both theories in the data. However, we also observe a significant number of violations after accounting for decision noise, which suggest that bidders\u2019 valuations may be malleable to cues of the auction environment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Congratulations to Dr Matt Walker and his co-authors Ernan Haruvy (McGill) and Timo Heinrich (Hamburg) for their paper entitled &#8220;Separating probability weighting and risk aversion&#8230; <br \/><a href=\"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/2022\/10\/19\/celebrating-success-dr-matt-walker-2\/\" rel=\"bookmark\"><strong>Read more<\/strong><\/a><\/p>\n","protected":false},"author":4425,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-14570","post","type-post","status-publish","format-standard","hentry","category-research"],"acf":[],"_links":{"self":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts\/14570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/users\/4425"}],"replies":[{"embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/comments?post=14570"}],"version-history":[{"count":3,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts\/14570\/revisions"}],"predecessor-version":[{"id":14573,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/posts\/14570\/revisions\/14573"}],"wp:attachment":[{"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/media?parent=14570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/categories?post=14570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microsites.ncl.ac.uk\/nubsstaffblog\/wp-json\/wp\/v2\/tags?post=14570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}