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What model for entry in first-price auctions? A nonparametric approach

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  • Marmer, Vadim
  • Shneyerov, Artyom
  • Xu, Pai

Abstract

We develop a selective entry model for first-price auctions that nests two polar models often estimated in the empirical literature on auctions, Levin and Smith (1994), and Samuelson (1985). The selective entry model features a pro-competitive selection effect. The selection effect is shown to be nonparametrically identifiable, and a nonparametric test for its presence is proposed. This test can be used to discriminate between the two polar models.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 176 (2013)
Issue (Month): 1 ()
Pages: 46-58

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Handle: RePEc:eee:econom:v:176:y:2013:i:1:p:46-58

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Web page: http://www.elsevier.com/locate/jeconom

Related research

Keywords: First-price auctions; Models of entry; Selective entry; Selection effect; Nonparametric estimation; Quantiles;

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References

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Citations

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Cited by:
  1. De Silva, Dakshina G. & Kosmopoulou, Georgia & Pagel, Beatrice & Peeters, Ronald, 2010. "The impact of timing on bidding behavior in procurement auctions of contracts with private costs," MPRA Paper 27355, University Library of Munich, Germany.
  2. Hanming Fang & Xun Tang, 2013. "Inference of Bidders’ Risk Attitudes in Ascending Auctions with Endogenous Entry," PIER Working Paper Archive 13-056, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  3. Sokbae Lee & Kyungchul Song & Yoon-Jae Whang, 2014. "Testing For A General Class Of Functional Inequalities," KIER Working Papers 889, Kyoto University, Institute of Economic Research.
  4. Vivek Bhattacharya & James W. Roberts & Andrew Sweeting, 2013. "Regulating Bidder Participation in Auctions," NBER Working Papers 19352, National Bureau of Economic Research, Inc.
  5. Coviello, Decio & Mariniello, Mario, 2014. "Publicity requirements in public procurement: Evidence from a regression discontinuity design," Journal of Public Economics, Elsevier, vol. 109(C), pages 76-100.
  6. Damianov, Damian, 2008. "Seller Competition by Mechanism Design," MPRA Paper 9348, University Library of Munich, Germany.
  7. Hanming Fang & Xun Tang, 2013. "Inference of Bidders’ Risk Attitudes in Ascending Auctions with Endogenous Entry," NBER Working Papers 19435, National Bureau of Economic Research, Inc.
  8. Marmer, Vadim & Shneyerov, Art & Xu, Pai, 2010. "Supplement to "What Model for Entry in First-Price Auctions? A Nonparametric Approach"," Microeconomics.ca working papers vadim_marmer-2010-22, Vancouver School of Economics, revised 18 Feb 2011.
  9. Hanming Fang & Xun Tang, 2011. "Inference of Bidders’ Risk Attitudes in Ascending Auctions with Endogenous Entry, Second Version," PIER Working Paper Archive 12-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 17 Apr 2012.
  10. Elena Krasnokutskaya & Katja Seim, 2011. "Bid Preference Programs and Participation in Highway Procurement Auctions," American Economic Review, American Economic Association, vol. 101(6), pages 2653-86, October.
  11. James W. Roberts & Andrew Sweeting, 2011. "When Should Sellers Use Auctions?," NBER Working Papers 17624, National Bureau of Economic Research, Inc.
  12. Matthew Gentry & Tong Li, 2012. "Identifcation in auctions with selective entry," CeMMAP working papers CWP38/12, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  13. Florencia M. Gabrielli, 2013. "Detecting Collusion on Highway Procurement," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 59, pages 127-165, January-D.
  14. Nianqing Liu & Quang Vuong & Haiqing Xu, 2012. "Rationalization and Identification of Discrete Games with Correlated Types," Department of Economics Working Papers 130915, The University of Texas at Austin, Department of Economics.

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