The Herodotus paradox
Games and Economic Behavior , Volume 74 - Issue 1 p. 399- 406
The Babylonian bridal auction, described by Herodotus, is regarded as one of the earliest uses of an auction in history. Yet, to our knowledge, the literature lacks a formal equilibrium analysis of this auction. We provide such an analysis for the two-player case with complete and incomplete information, and in so doing identify what we call the "Herodotus paradox".
|Auctions, Contests, Ex ante equilibrium, Fubini's Theorem, Interim equilibrium, Mixed strategy|
|Games and Economic Behavior|
|Organisation||Erasmus School of Economics|
Baye, M.R, Kovenock, D, & de Vries, C.G. (2012). The Herodotus paradox. Games and Economic Behavior, 74(1), 399–406. doi:10.1016/j.geb.2011.07.004