A quick and simple introduction to one of the hottest topics in the field of Economics.

Taken from google. Whoever made this, you are awesome.

The field of Economics was once considered boring and mundane, but not anymore. The field has garnered quite the popularity thanks to the rise of Behavioral Economics - a revolutionary idea that started a long time ago and was popularised through excellent books such as thinking fast and slow by Daniel Kahneman as well as Nudge by Richard Thaler.

But what’s the big idea behind Behavioral Economics? Why is it popular among academics and non-academics alike? …

Taken from google

Ah, the classic p-value. The concept of hypothesis testing and p-value is very familiar to all of us. We were first taught about it in high school and again, in the university if we took fundamental statistics. At first glance, it seems like all powerful and reliable tools that one can use to aid his/her decision making process — which can be true in certain applications. However little did I know, the dynamic duo are not infallible.

In the year 2016, a statement by American Statistical Association (ASA) centred around p values sparked one of the most important and nerdiest…

A comprehensive and simple guide to the field of auction theory

Image taken from Google

The year 2020 was a big year for applied economics. It was the year when two brilliant minds - Paul Milgrom and Robert B. Wilson were announced as the recipients of The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel or as most people know it, the Nobel prize in Economics¹. They were selected because of their contributions to the field of Auction Theory - an applied branch of Economics.

Compared to another applied branch of Economics such as Behavioral Economics, Auction Theory may be less…

Image taken from google. Vickrey Auction can be extended to Real Time Bidding (RTB)

Vickrey auction is known for its “too good to be true” property. This type of auctions is designed in such a way that bidders will bid at their true valuations. In other words, they will not lie! How does that even work? Without further a do, let us use a simple game theory to prove that.

The simple game theoretic proof¹

Consider the a hypothetical bidder that we call Albert. Albert has a valuation of v and a bid b. Remember that in Vickrey auction, each bidder will have to submit a sealed bid of their valuations in a closed envelope (or anything that is…

Albert Wibowo

A full-time nerd

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