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Structural Inferences from First-Price Auction Experiments Author info | Abstract | Publisher info | Download info | Related research | Statistics Paul Pezanis-Christou ()
Andres Romeu ()
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We use structural methods to assess equilibrium models of bidding with data from first-price auction experiments. We identify conditions to test the Nash equilibrium models for homogenous and for heterogeneous constant relative risk aversion when bidders private valuations are independent and uniformly drawn. The outcomes of our study indicate that behavior may have been affected by the procedure used to conduct the experiments and that the usual Nash equilibrium model for heterogeneous constant relative risk averse bidders does not consistently explain the observed overbidding. From an empirical standpoint, our analysis shows the possible drawbacks of overlooking the homogeneity hypothesis when testing symmetric equilibrium models of bidding and it puts in perspective the sensitivity of structural inferences to the available information.
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Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number
531.02.
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Length: 39
Date of creation: 19 Nov 2002Date of revision:
Handle: RePEc:aub:autbar:531.02Contact details of provider: Postal: 08193, Bellaterra, Barcelona Phone: 34 93 592 1203 Web page: http://pareto.uab.cat More information through EDIRC
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Keywords: first-price auctions ; private independent values ; experimental data ; structural econometric methods ; Non Linear Least Squares ; constant relative risk aversion ; Other versions of this item:
Find related papers by JEL classification: C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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repec:att:wimass:1920013 is not listed on IDEAS
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Sadrieh, A. & Pezanis-Christou, P., 2003.
"Elicited bid functions in (a)symmetric first-price auctions ,"
Discussion Paper
58, Tilburg University, Center for Economic Research.
[Downloadable!]
Other versions: Klaus Abbink & Jordi Brandts & Paul Pezanis-Christou, 2002.
"Auctions for Government Securities: A Laboratory Comparison of Uniform, Discriminatory and Spanish Designs ,"
UFAE and IAE Working Papers
551.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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Other versions:
Abbink, Klaus & Brandts, Jordi & Pezanis-Christou, Paul, 2006.
"Auctions for government securities: A laboratory comparison of uniform, discriminatory and Spanish designs ,"
Journal of Economic Behavior & Organization ,
Elsevier, vol. 61(2), pages 284-303, October.
[Downloadable!] (restricted) Olivier Armantier & Nicolas Treich, 2006.
"Overbidding in Independant Private-Values Auctions and Misperception of Probabilities ,"
CIRANO Working Papers
2006s-15, CIRANO.
[Downloadable!]
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