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Nonparametric inference on counterfactuals in first-price auctions

Pasha Andreyanov, Grigory Franguridi

arXiv 25 Jun 2021 · Econometrics

arXiv:2106.13856 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In a classical model of the first-price sealed-bid auction with independent private values, we develop nonparametric estimators for several policy-relevant targets, such as the bidder's surplus and auctioneer's revenue under counterfactual reserve prices. Motivated by the linearity of these targets in the quantile function of bidders' values, we propose an estimator of the latter and derive its Bahadur-Kiefer expansion. This makes it possible to construct uniform confidence bands and test complex hypotheses about the auction design. Using the data on U.S. Forest Service timber auctions, we test whether setting zero reserve prices in these auctions was revenue maximizing.

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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
1Guerre, E., I. Perrigne, and Q. Vuong (2000) Optimal nonparametric estimation of first-price auctions0.92843100%
2Zincenko, F (2024) Estimation and inference of seller’s expected revenue in first-price auctions0.81142100%
3Krishna, V (2009) Auction Theory0.64441100%
4Athey, S. and P. A. Haile (2007) Nonparametric approaches to auctions0.64422100%
5Jones, M. C (1992) Estimating densities, quantiles, quantile densities and density quantiles0.64422100%
6Li, T., I. Perrigne, and Q. Vuong (2000) Conditionally independent private information in OCS wildcat auctions0.64422100%
7Luo, Y. and Y. Wan (2018) Integrated-quantile-based estimation for first-price auction models0.64422100%
8Rio, E (1994) Local invariance principles and their application to density estimation0.58531100%
9Chernozhukov, V., D. Chetverikov, and K. Kato (2014) Gaussian approximation of suprema of empirical processes0.57216419%
10Bloch, D. A. and J. L. Gastwirth (1968) On a simple estimate of the reciprocal of the density function0.51121100%

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Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Bias correction and uniform inference for the quantile density function0.00022