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Empirical Models of Auctions

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  • Susan Athey
  • Philip A. Haile

Abstract

Many important economic questions arising in auctions can be answered only with knowledge of the underlying primitive distributions governing bidder demand and information. An active literature has developed aiming to estimate these primitives by exploiting restrictions from economic theory as part of the econometric model used to interpret auction data. We review some highlights of this recent literature, focusing on identification and empirical applications. We describe three insights that underlie much of the recent methodological progress in this area and discuss some of the ways these insights have been extended to richer models allowing more convincing empirical applications. We discuss several recent empirical studies using these methods to address a range of important economic questions.

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Paper provided by UCLA Department of Economics in its series Levine's Bibliography with number 122247000000001045.

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Date of creation: 27 Mar 2006
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Handle: RePEc:cla:levrem:122247000000001045

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Citations

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Cited by:
  1. Philippe Jehiel & Benny Moldovanu, 2006. "Allocative and Informational Externalities in Auctions and Related Mechanisms," Levine's Bibliography 122247000000001129, UCLA Department of Economics.
  2. Liran Einav & Jonathan Levin, 2010. "Empirical Industrial Organization: A Progress Report," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 145-62, Spring.
  3. Song, Zirui & Landrum, Mary Beth & Chernew, Michael E., 2013. "Competitive bidding in Medicare Advantage: Effect of benchmark changes on plan bids," Journal of Health Economics, Elsevier, Elsevier, vol. 32(6), pages 1301-1312.
  4. Jehiel, Philippe, 2011. "Manipulative auction design," Theoretical Economics, Econometric Society, Econometric Society, vol. 6(2), May.
  5. Gian Luigi Albano & Federico Dini & Roberto Zampino, 2008. "Bidding for Complex Projects: Evidence From the Acquisitions of IT Services," Working Papers, Fondazione Eni Enrico Mattei 2008.86, Fondazione Eni Enrico Mattei.
  6. Bruno Bosco & Lucia Parisio & Matteo Pelagatti, 2010. "Estimating Marginal Costs and Market Power in the Italian Electricity Auctions," Working Papers, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica 20100201, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica.
  7. Charles A. Holt & William Shobe & Dallas Burtraw & Karen Palmer & Jacob K. Goeree, 2007. "Auction Design for Selling CO2 Emission Allowances Under the Regional Greenhouse Gas Initiative," Reports, Center for Economic and Policy Studies 2007-03, Center for Economic and Policy Studies.
  8. Blancas, Luis & Chioda, Laura & Cordella, Tito & Oliveira, Alexandre & Vardy, Felix, 2011. "Do procurement rules impact infrastructure investment efficiency ? an empirical analysis of inversao das fases in Sao Paulo state," Policy Research Working Paper Series 5528, The World Bank.
  9. Ivaldi, Marc & Motis, Jrissy, 2007. "Mergers as Auctions," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 461, Institut d'Économie Industrielle (IDEI), Toulouse.
  10. Veronika Grimm, 2007. "Paarsch, H. J., and Hong, H.: An Introduction to the Structural Econometrics of Auction Data," Journal of Economics, Springer, Springer, vol. 92(2), pages 205-208, October.
  11. Bierens, Herman J. & Song, Hosin, 2012. "Semi-nonparametric estimation of independently and identically repeated first-price auctions via an integrated simulated moments method," Journal of Econometrics, Elsevier, Elsevier, vol. 168(1), pages 108-119.

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