Unobserved heterogeneity in auctions under restricted stochastic dominance

Yao Luo

Journal of Econometrics, 2020, vol. 216, issue 2, 354-374

Abstract: We study the identification of first-price auctions with nonseparable unobserved heterogeneity. In particular, we extend Hu et al. (2013) by relaxing the first-order stochastic dominance condition. Instead, we assume restricted stochastic dominance relations among value quantile functions and show that the same relations pass to bid quantile functions. An ordered tree summarizes these relations and provides a total ordering. Relying on the proposed restricted stochastic dominance ordering, we extend a list of identification results in the empirical auction literature.

Keywords: Misclassification; Finite mixture; Eigenvalue decomposition; Multidimensional unobserved heterogeneity; Risk aversion (search for similar items in EconPapers)
JEL-codes: C14 D44 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:216:y:2020:i:2:p:354-374

DOI: 10.1016/j.jeconom.2019.07.009

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