An Experimental Evaluation of Regret-Based Econometrics

Speaker
Gali Noti
Date
14/06/2016 - 12:30 - 11:00Add To Calendar 2016-06-14 11:00:00 2016-06-14 12:30:00 An Experimental Evaluation of Regret-Based Econometrics Abstract: Using data obtained in a controlled ad-auction experiment that we ran, we evaluate the regret-based approach to econometrics that was recently suggested by Nekipelov, Syrgkanis, and Tardos (EC 2015). We found that despite the weak regret-based assumptions, the results were (at least) as accurate as those obtained using classical equilibrium-based assumptions. En route we studied to what extent did humans actually minimize regret in our ad-auction, and found a significant difference between the “high types” who indeed rationally minimized regret and the “low types” that significantly over-bid. We suggest that correcting for these biases may improve the accuracy of estimated values. Paper Economics building (No. 504), room 011 אוניברסיטת בר-אילן - Department of Economics Economics.Dept@mail.biu.ac.il Asia/Jerusalem public
Place
Economics building (No. 504), room 011
Affiliation
Hebrew University
Abstract

Abstract: Using data obtained in a controlled ad-auction experiment that we ran, we evaluate the regret-based approach to econometrics that was recently suggested by Nekipelov, Syrgkanis, and Tardos (EC 2015). We found that despite the weak regret-based assumptions, the results were (at least) as accurate as those obtained using classical equilibrium-based assumptions. En route we studied to what extent did humans actually minimize regret in our ad-auction, and found a significant difference between the “high types” who indeed rationally minimized regret and the “low types” that significantly over-bid. We suggest that correcting for these biases may improve the accuracy of estimated values.

Paper

Last Updated Date : 29/05/2016