diff --git a/lectures/two_auctions.md b/lectures/two_auctions.md index ec35a42ac..a559906e8 100644 --- a/lectures/two_auctions.md +++ b/lectures/two_auctions.md @@ -424,13 +424,14 @@ def evaluate_largest(v_hat, array, order=1): We can check the accuracy of our `evaluate_largest` method by comparing it with an analytical solution. -We find that despite small discrepancy, the evaluate_largest method functions well. - -Furthermore, if we take a very large number of auctions, say 1 million, the discrepancy disappears. +We find that the `evaluate_largest` method functions well ```{code-cell} ipython3 -v_grid = np.linspace(0.3,1,8) -bid_analytical = b_star(v_grid,N) +v_grid = np.linspace(0.3, 1, 8) +bid_analytical = b_star(v_grid, N) + +# Redraw valuations +v = np.random.uniform(0, 1, (N, R)) bid_simulated = [evaluate_largest(ii, v) for ii in v_grid] fig, ax = plt.subplots(figsize=(6, 4))