Ulric B. and Evelyn L. Bray Social Sciences Seminar
Baxter B125
Explaining Mechanisms: Experts Make A Difference
Ori Heffetz,
Professor of Economics,
SC Johnson College of Business,
Cornell University,
Abstract: We asked expert market designers to explain the Vickrey-Clarke-Groves auction to lab participants. We randomized the explanation provided, and then measured bidding behavior, understanding, and self-reported attitudes. We compared experts to two benchmarks: an explanation generated by an AI model, and a control treatment that simply asserts that bidding one's values maximizes profits.
Joint work with Amir Adar, Yannai Gonczarowski, and Shengwu Li.
For more information, please contact Mary Martin by phone at 626-395-4571 or by email at [email protected].