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Inference on Auctions with Weak Assumptions on Information

Vasilis Syrgkanis, Elie Tamer, Juba Ziani

arXiv 10 Oct 2017 · Econometrics · 21 citations (OpenAlex)

arXiv:1710.03830 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Given a sample of bids from independent auctions, this paper examines the question of inference on auction fundamentals (e.g. valuation distributions, welfare measures) under weak assumptions on information structure. The question is important as it allows us to learn about the valuation distribution in a robust way, i.e., without assuming that a particular information structure holds across observations. We leverage the recent contributions of \cite{Bergemann2013} in the robust mechanism design literature that exploit the link between Bayesian Correlated Equilibria and Bayesian Nash Equilibria in incomplete information games to construct an econometrics framework for learning about auction fundamentals using observed data on bids. We showcase our construction of identified sets in private value and common value auctions. Our approach for constructing these sets inherits the computational simplicity of solving for correlated equilibria: checking whether a particular valuation distribution belongs to the identified set is as simple as determining whether a {\it linear} program is feasible. A similar linear program can be used to construct the identified set on various welfare measures and counterfactual objects. For inference and to summarize statistical uncertainty, we propose novel finite sample methods using tail inequalities that are used to construct confidence regions on sets. We also highlight methods based on Bayesian bootstrap and subsampling. A set of Monte Carlo experiments show adequate finite sample properties of our inference procedures. We illustrate our methods using data from OCS auctions.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1D. Bergemann and S. Morris (2013) Robust predictions in games with incomplete information0.84333100%
2D. Bergemann and S. Morris (2016) Bayes correlated equilibrium and the comparison of information structures in games0.81142100%
3T. Li, I. Perrigne, and Q. Vuong (2002) Structural estimation of the affiliated private value auction model0.69351100%
4D. Bergemann, B. Brooks, and S. Morris (2017) First-price auctions with general information structures: Implications for bidding and revenue0.6444250%
5L. Magnolfi and C. Roncoroni (2016) Estimation of discrete games with weak assumptions on information0.64422100%
6A. Maurer and M. Pontil (2009) Empirical Bernstein Bounds and Sample Variance Penalization0.58531100%
7B. Kline and E. Tamer (2016) Bayesian inference in a class of partially identified models0.51121100%
8V. Chernozhukov, H. Hong, and E. Tamer (2007) Estimation and confidence regions for parameter sets in econometric models0.51121100%
9J.-Y. Audibert, R. Munos, and C. Szepesvári (1876) Exploration–exploitation tradeoff using variance estimates in multi-armed bandits0.40511100%
10G. Chamberlain and G. W. Imbens (2003) Nonparametric applications of bayesian inference0.40511100%

Showing the top 10 of 18 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Identification and Estimation of Dynamic Games with Unknown Information Structure1.00074
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3Microeconometrics with Partial Identification0.51121
4Debiased Machine Learning of Set-Identified Linear Models0.40511
5Finite Sample Inference for the Maximum Score Estimand0.40511
6Simple subvector inference on sharp identified set in affine models0.40511
72010.088680.40511
8Policy Transforms and Learning Optimal Policies I thank Jiaying Gu, Ismael Mourifie, Eduardo Souza-Rodrigues, Adam Rosen, Stanislav Volgushev and Yuanyuan Wan for their feedback and encouragement, and I am especially grateful to JoonHwan Cho for many hours of discussion that helped to improve this paper. A previous version of this paper appeared in my doctoral thesis at the University of Toronto. This research was supported by the Social Sciences and Humanities Research Council of Canada. All errors are my own0.40511
9The Core of Bayesian Persuasion0.40511
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