This is true. The issue is that the Nash Equilibrium formulation of TD predicts that everyone else will bid $2, which is counter-intuitive and does not confirm empirical findings.
I’m trying to convince myself that the NE formulation in TD is not entirely rational.
This is true. The issue is that the Nash Equilibrium formulation of TD predicts that everyone else will bid $2, which is counter-intuitive and does not confirm empirical findings.
I’m trying to convince myself that the NE formulation in TD is not entirely rational.