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

  • 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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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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  31. Marmer, Vadim & Shneyerov, Art & Xu, Pai, 2010. "Supplement to "What Model for Entry in First-Price Auctions? A Nonparametric Approach"," working papers vadim_marmer-2010-22, Vancouver School of Economics, revised 18 Feb 2011.
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