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- Title
An empirical study of auction revenue rankings: the case of municipal bonds.
- Authors
Shneyerov, Artyom
- Abstract
Using a novel dataset of 386 first-price municipal bond auctions held in California, I perform counterfactual revenue comparisons, based on the theoretical result of Milgrom and Weber ( 1982) . I show that the revenue in the second-price auction is nonparametrically identified, and the counterfactual revenue in the English auction can be bounded in an informative way. These results form a basis for nonparametric estimation of counterfactual revenue differences. I find that the revenue gain from using the English auction would be in the range of 11%-19% of the gross underwriting spread, and that most of it would already be captured by using the second-price auction. The recent explosive growth of Internet English auctions, administered by Grant Street Group, provides external support to the claim that auction design matters in this market.
- Publication
RAND Journal of Economics (Wiley-Blackwell), 2006, Vol 37, Issue 4, p1005
- ISSN
0741-6261
- Publication type
Article
- DOI
10.1111/j.1756-2171.2006.tb00068.x