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Identification of Auction Models Using Order Statistics

Yao Luo, Ruli Xiao

arXiv 25 May 2022 · Econometrics · publishedJournal of Econometrics (2023) · 6 citations (OpenAlex)

arXiv:2205.12917 · PDF · DOI · OpenAlex · Extracted main text

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.

Citation extraction

38
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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
1Song, U (2004) Nonparametric estimation of an eBay auction model with an unknown number of bidders1.000103100%
2Hu, Y., D. McAdams, and M. Shum (2013) Identification of first-price auctions with non-separable unobserved heterogeneity0.87472100%
3Hu, Y (2008) Identification and estimation of nonlinear models with misclassification error using instrumental variables: A general solution0.87452100%
4Guerre, E. and Y. Luo (2020) Nonparametric Identification of First-Price Auction with Unobserved Competition: A Density Discontinuity Framework0.81142100%
5Athey, S. and P. A. Haile (2002) Identification of standard auction models0.73732100%
6Freyberger, J. and B. J. Larsen (2017) Identification in ascending auctions, with an application to digital rights management, Tech0.73732100%
7Krasnokutskaya, E (2011) Identification and estimation of auction models with unobserved heterogeneity0.73732100%
8Guerre, E., I. Perrigne, and Q. Vuong (2000) Optimal nonparametric estimation of first-price auctions0.64422100%
9Li, T. and Q. Vuong (1998) Nonparametric estimation of the measurement error model using multiple indicators0.64422100%
10Haile, P. A. and E. Tamer (2003) Inference with an incomplete model of English auctions0.64422100%

Showing the top 10 of 38 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
1Inference in Auctions with Many Bidders Using Transaction Prices0.40511
2Deconvolution from two order statisticsWe thank Gaurab Aryal, Christian Gouriéroux, Philip Haile, Lixiong Li, José Luis Montiel Olea, Chen Qiu, Cailin Slattery, and conference participants for helpful comments. We thank Cristián Hernández, Daniel Quint, and Christopher Turansick for sharing their code0.40511
3Identification and Estimation of Seller Risk Aversion in Ascending Auctions0.40511
4Identification in Auctions with Truncated Transaction Prices0.40511