On the Asymptotic Distribution of the Transaction Price in a Clock Model of a Multi-Unit, Oral, Ascending-Price Auction within the Common-Value Paradigm

Han Hong, Harry Paarsch and Pai Xu

No 2010-8, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: Using a clock model of a multi-unit, oral, ascending-price auction, within the commonvalue paradigm, we analyse the asymptotic behaviour of the transaction price as the number of bidders gets large. We find that even though the transaction price is determined by a (potentially small) fraction of losing drop-out bids, that price converges in probability to the ex ante unknown, true value. Subsequently, we derive the asymptotic distribution of the transaction price. Finally, we apply our methods to data from an auction of taxi license plates held in Shenzhen, China.

Keywords: common value; information aggregation; multi-unit auctions; taxis (search for similar items in EconPapers)
JEL-codes: C20 D44 L1 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2010-12
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/29195/wp2010-8.pdf

Related works:
Journal Article: On the asymptotic distribution of the transaction price in a clock model of a multi-unit, oral, ascending-price auction within the common-value paradigm (2013)
Working Paper: On the Asymptotic Distribution of the Transaction Price in a Clock Model of a Multi-Unit, Oral, Ascending-Price Auction within the Common-Value Paradigm (2010)
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