arXiv 15 Feb 2022 · Theoretical Economics · 1 citations (OpenAlex)
arXiv:2202.07517 · PDF · DOI · OpenAlex · Extracted main text
In many first-price auctions, bidders face considerable strategic uncertainty: They cannot perfectly anticipate the other bidders' bidding behavior. We propose a model in which bidders do not know the entire distribution of opponent bids but only the expected (winning) bid and lower and upper bounds on the opponent bids. We characterize the optimal bidding strategies and prove the existence of equilibrium beliefs. Finally, we apply the model to estimate the cost distribution in highway procurement auctions and find good performance out-of-sample.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Guerre, E., I. Perrigne, and Q. Vuong (2000) Optimal nonparametric estimation of first-price auctions | 1.000 | 6 | 3 | 100% |
| 2 | Kasberger, B. and K. H. Schlag (2022) Robust bidding in first-price auctions: How to bid without knowing what others are doing self | 0.874 | 5 | 2 | 100% |
| 3 | Bajari, P., S. Houghton, and S. Tadelis (2014, April) (2014) Bidding for incomplete contracts: An empirical analysis of adaptation costs | 0.811 | 4 | 2 | 100% |
| 4 | Donald, S. G. and H. J. Paarsch (2002) Superconsistent estimation and inference in structural econometric models using extreme order statistics | 0.737 | 3 | 2 | 100% |
| 5 | Linhart, P. and R. Radner (1989) Minimax-regret strategies for bargaining over several variables | 0.644 | 2 | 2 | 100% |
| 6 | Savage, L. J (1951) The theory of statistical decision | 0.644 | 2 | 2 | 100% |
| 7 | Winkler, G (1988) Extreme points of moment sets | 0.511 | 2 | 2 | 50% |
| 8 | Lehrer, E. (2012, February) (2012) Partially specified probabilities: Decisions and games | 0.511 | 2 | 1 | 100% |
| 9 | Klibanoff, P (1996) Uncertainty, decision, and normal form games | 0.511 | 2 | 1 | 100% |
| 10 | Lo, K. C (1996) Equilibrium in beliefs under uncertainty | 0.511 | 2 | 1 | 100% |
Showing the top 10 of 46 scored citations.