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- Title
Estimation in English auctions with unobserved heterogeneity.
- Authors
Hernández, Cristián; Quint, Daniel; Turansick, Christopher
- Abstract
We propose a framework for identification and estimation of a private values model with unobserved heterogeneity from bid data in English auctions, using variation in the number of bidders across auctions, and extend the framework to settings where the number of bidders is not cleanly observed in each auction. We illustrate our method on data from eBay Motors auctions. We find that unobserved heterogeneity is important, accounting for two thirds of price variation after controlling for observables, and that welfare measures would be dramatically misestimated if unobserved heterogeneity were ignored.
- Subjects
AUCTIONS; HETEROGENEITY; BIDDERS
- Publication
RAND Journal of Economics (Wiley-Blackwell), 2020, Vol 51, Issue 3, p868
- ISSN
0741-6261
- Publication type
Article
- DOI
10.1111/1756-2171.12343