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Forestry auctions with interdependent values: Evidence from timber auctions

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  • Tatoutchoup, Francis Didier

Abstract

This article exploits first-price sealed-bid auctions data from the U.S. Forest Service to find through a semi-parametric estimation evidence of interdependent values in the bidding behavior in the Forestry. Under this assumption, a theoretical model is developed for forest land auctions such that management of the forest is released to the winning firm. I characterize in the first-price auctions the optimal rotation as well as the reservation price. A calibration of the model is then proposed using the estimated parameters as well as the estimation of the underlying distribution of signals.

Suggested Citation

  • Tatoutchoup, Francis Didier, 2017. "Forestry auctions with interdependent values: Evidence from timber auctions," Forest Policy and Economics, Elsevier, vol. 80(C), pages 107-115.
    • Handle: RePEc:eee:forpol:v:80:y:2017:i:c:p:107-115
    DOI: 10.1016/j.forpol.2017.02.004
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    References listed on IDEAS

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    1. Matthew Gentry & Tong Li, 2014. "Identification in Auctions With Selective Entry," Econometrica, Econometric Society, vol. 82(1), pages 315-344, January.
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    Cited by:

    1. Didier Tatoutchoup Francis & Samuel Njiki Paul, 2020. "Optimal Forestry Contract with Interdependent Costs," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 20(1), pages 1-13, January.

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    More about this item

    Keywords

    Interdependent values; Auctions; Semi-parametric estimation; Faustmann rule; Optimal forest rotation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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