Identification of auction models using order statistics

Yao Luo and Ruli Xiao

Journal of Econometrics, 2023, vol. 236, issue 1

Abstract: Auction data often contain information on only the most competitive bids as opposed to all bids. The usual measurement error approaches to unobserved heterogeneity are inapplicable due to dependence among order statistics. We bridge this gap by providing a set of positive identification results. First, we show that symmetric auctions with discrete unobserved heterogeneity are identifiable using two consecutive order statistics and an instrument. Second, we extend the results to ascending auctions with unknown competition and unobserved heterogeneity.

Keywords: Consecutive order statistics; Finite mixture; Unobserved competition; Multidimensional unobserved heterogeneity (search for similar items in EconPapers)
JEL-codes: C14 D44 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:236:y:2023:i:1:s0304407623001513

DOI: 10.1016/j.jeconom.2023.04.003

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