What Model for Entry in First-Price Auctions? A Nonparametric Approach∗
نویسندگان
چکیده
We develop a selective entry model for first-price auctions that nests several models earlier proposed in the literature, and features a pro-competitive selection effect. The selection effect is shown to be nonparametrically identifiable, and a nonparametric test for its presence is proposed. In the empirical application to highway procurement, we find that the selection effect overwhelms the anticompetitive entry effect identified in earlier research, and restricting competition is not optimal. JEL Classification: C12; C13; C14
منابع مشابه
Supplement to “What Model for Entry in First-Price Auctions? A Nonparametric Approach”
This paper contains supplemental materials for Marmer, Shneyerov, and Xu (2011), MSX hereafter. It establishes validity of the bootstrap delta-method expansion (65) in Appendix E of MSX. In what follows, the statistics with superscript † denote the bootstrap analogues of the statistics computed using the original data. To simplify the notion, we will suppress the subscript indicating the bootst...
متن کاملQuantile-Based Nonparametric Inference for First-Price Auctions
We propose a quantile-based nonparametric approach to inference on the probability density function (PDF) of the private values in rst-price sealedbid auctions with independent private values. Our method of inference is based on a fully nonparametric kernel-based estimator of the quantiles and PDF of observable bids. Our estimator attains the optimal rate of Guerre, Perrigne, and Vuong (2000),...
متن کاملIdentification in first-price and Dutch auctions when the number of potential bidders is unobservable
Within the IPV paradigm, we show nonparametric identi cation of model primitives for rst-price and Dutch auctions with a binding reserve price and auction-speci c, unobservable sets of potential bidders. Keywords: Nonparametric identi cation, Auctions JEL Classi cation Numbers: C14, D44.
متن کاملNonparametric Approaches to Auctions∗
This chapter discusses structural econometric approaches to auctions. Remarkably, much of what can be learned from auction data can be learned without restrictions beyond those derived from the relevant economic model. This enables us to take a nonparametric perspective in discussing how the structure of auction models can be combined with observables to uncover (or test hypotheses about) primi...
متن کاملNonparametric Identification and Estimation of Pure Common Value Auction Models with an Application to U.S. OCS Wildcat Auctions∗ (Job Market Paper)
Although pure common value auction models have broad applicability in empirical analysis, nonparametric identification and structural estimation remain challenging in these contexts. In this paper, we establish novel identification results for both the first-price and the second-price sealed-bid auction models in the pure common value framework. We show that the joint distribution of private si...
متن کامل