IDEAS home Printed from https://ideas.repec.org/a/taf/japsta/v42y2015i2p380-397.html
   My bibliography  Save this article

Bayesian comparison of private and common values in structural second-price auctions

Author

Listed:
  • Bertil Wegmann

Abstract

Private and common values (CVs) are the two main competing valuation models in auction theory and empirical work. In the framework of second-price auctions, we compare the empirical performance of the independent private value (IPV) model to the CV model on a number of different dimensions, both on real data from eBay coin auctions and on simulated data. Both models fit the eBay data well with a slight edge for the CV model. However, the differences between the fit of the models seem to depend to some extent on the complexity of the models. According to log predictive score the IPV model predicts auction prices slightly better in most auctions, while the more robust CV model is much better at predicting auction prices in more unusual auctions. In terms of posterior odds, the CV model is clearly more supported by the eBay data.

Suggested Citation

  • Bertil Wegmann, 2015. "Bayesian comparison of private and common values in structural second-price auctions," Journal of Applied Statistics, Taylor & Francis Journals, vol. 42(2), pages 380-397, February.
    • Handle: RePEc:taf:japsta:v:42:y:2015:i:2:p:380-397
    DOI: 10.1080/02664763.2014.951604
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02664763.2014.951604
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02664763.2014.951604?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:japsta:v:42:y:2015:i:2:p:380-397. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJAS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.