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Grenander-type Density Estimation under Myerson Regularity

Haitian Xie

arXiv 15 May 2023 · Econometrics

arXiv:2305.09052 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This study presents a novel approach to the density estimation of private values from second-price auctions, diverging from the conventional use of smoothing-based estimators. We introduce a Grenander-type estimator, constructed based on a shape restriction in the form of a convexity constraint. This constraint corresponds to the renowned Myerson regularity condition in auction theory, which is equivalent to the concavity of the revenue function for selling the auction item. Our estimator is nonparametric and does not require any tuning parameters. Under mild assumptions, we establish the cube-root consistency and show that the estimator asymptotically follows the scaled Chernoff's distribution. Moreover, we demonstrate that the estimator achieves the minimax optimal convergence rate.

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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
1Ewerhart, C (2013) Regular type distributions in mechanism design and $-$concavity0.6443267%
2Bulow, J. and P. Klemperer (1996) Auctions versus negotiations0.64422100%
3Myerson, R. B (1981) Optimal auction design0.64422100%
4Westling, T. and M. Carone (2020) A unified study of nonparametric inference for monotone functions0.5115220%
5Luo, Y. and Y. Wan (2018) Integrated-quantile-based estimation for first-price auction models0.5113233%
6Durot, C (2007) On the $L_p$-error of monotonicity constrained estimators0.5112250%
7Groeneboom, P. and J. A. Wellner (2001) Computing chernoff's distribution0.51121100%
8Henderson, D. J., J. A. List, D. L. Millimet, C. F. Parmeter, and M.… (2012) Empirical implementation of nonparametric first-price auction models0.40511100%
9Szech, N (2011) Optimal advertising of auctions0.40511100%
10Balabdaoui, F., H. Jankowski, M. Pavlides, A. Seregin, and J. Wellner (2011) On the grenander estimator at zero0.40511100%

Showing the top 10 of 30 scored citations.