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Structural Estimation of the Scoring Auction Model

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  • NAKABAYASHI Jun
  • HIROSE Yohsuke

Abstract

This paper offers an analytical framework for the scoring auction. We first characterize a symmetric monotone equilibrium in the scoring auction. We then propose a semiparametric procedure to identify the joint distribution of the bidder's multidimensional signal from scoring auction data. Our approach allows for a broad class of scoring rules in settings with multidimensional signals. Finally, using our analytical framework, we conduct an empirical experiment to estimate the impacts of the change of auction formats and scoring rules. The data on scoring auctions are from public procurement auctions for construction projects in Japan.

Suggested Citation

  • NAKABAYASHI Jun & HIROSE Yohsuke, 2016. "Structural Estimation of the Scoring Auction Model," Discussion papers 16008, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:16008
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    References listed on IDEAS

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    Cited by:

    1. Dastidar, Krishnendu Ghosh & Mukherjee, Diganta, 2014. "Corruption in delegated public procurement auctions," European Journal of Political Economy, Elsevier, vol. 35(C), pages 122-127.
    2. Krishnendu Ghosh Dastidar, 2014. "Scoring auctions with non-quasilinear scoring rules," ISER Discussion Paper 0902, Institute of Social and Economic Research, Osaka University.
    3. Huang, Yangguang, 2019. "An empirical study of scoring auctions and quality manipulation corruption," European Economic Review, Elsevier, vol. 120(C).
    4. Krishnendu Ghosh Dastidar, 2014. "Scoring Auctions," Studies in Microeconomics, , vol. 2(1), pages 35-48, June.
    5. Jorge González Chapela, 2019. "Weight Values, Scoring Rules and Abnormally Low Tenders Criteria in Multidimensional Procurement: Effects on Price," Hacienda Pública Española / Review of Public Economics, IEF, vol. 228(1), pages 55-81, March.
    6. Hidenori Takahashi, 2018. "Strategic design under uncertain evaluations: structural analysis of design‐build auctions," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 594-618, September.

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