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Is There Something You Can Do to Test if Bidders Are Behaving Rationally?
In game theory, it assumes that you have perfectly rational agents and even a common knowledge of perfect rationality. I don't know that that applies in the real world so much. There's been multiple ways of thinking about the possibility that players are not rational. Some of those ways involve creating new equilibrium concepts that try to accommodate for behaviora biases or failures of rationality.