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

Listed author(s):
  • Marmer, Vadim
  • Shneyerov, Artyom
  • Xu, Pai

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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File URL: http://www.sciencedirect.com/science/article/pii/S0304407613000821
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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
DOI: 10.1016/j.jeconom.2013.04.005
Contact details of provider: Web page: http://www.elsevier.com/locate/jeconom

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  3. Marmer, Vadim & Shneyerov, Artyom, 2006. "Quantile-Based Nonparametric Inference for First-Price Auctions," MPRA Paper 5899, University Library of Munich, Germany, revised 02 Mar 2006.
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  17. Tong Li & Isabelle Perrigne, 2003. "Timber Sale Auctions with Random Reserve Prices," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 189-200, February.
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