EconPapers    
Economics at your fingertips  
 

Estimating first-price auctions with an unknown number of bidders: A misclassification approach

Yonghong An, Yingyao Hu and Matthew Shum ()

Journal of Econometrics, 2010, vol. 157, issue 2, 328-341

Abstract: In this paper, we consider nonparametric identification and estimation of first-price auction models when N*, the number of potential bidders, is unknown to the researcher, but observed by bidders. Exploiting results from the recent econometric literature on models with misclassification error, we develop a nonparametric procedure for recovering the distribution of bids conditional on the unknown N*. Monte Carlo results illustrate that the procedure works well in practice. We present illustrative evidence from a dataset of procurement auctions, which shows that accounting for the unobservability of N* can lead to economically meaningful differences in the estimates of bidders' profit margins.

Keywords: Auction; models; Nonparametric; identification; Misclassification (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304-4076(10)00030-8
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Estimating First-Price Auctions with an Unknown Number of Bidders: A Misclassification Approach (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:157:y:2010:i:2:p:328-341

Access Statistics for this article

Journal of Econometrics is currently edited by T. Amemiya, A. R. Gallant, J. F. Geweke, C. Hsiao and P. M. Robinson

More articles in Journal of Econometrics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-07-13
Handle: RePEc:eee:econom:v:157:y:2010:i:2:p:328-341