EconBase
← All papers

Inference in Auctions with Many Bidders Using Transaction Prices

Federico A. Bugni, Yulong Wang

arXiv 16 Nov 2023 · Econometrics

arXiv:2311.09972 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper studies inference in first- and second-price sealed-bid auctions with many bidders, using an asymptotic framework where the number of bidders increases while the number of auctions remains fixed. Relevant applications include online, treasury, spectrum, and art auctions. Our approach enables asymptotically exact inference on key features such as the winner's expected utility, the seller's expected revenue, and the tail of the valuation distribution using only transaction price data. Our simulations demonstrate the accuracy of the methods in finite samples. We apply our methods to Hong Kong vehicle license auctions, focusing on high-priced, single-letter plates.

Citation extraction

63
references
119
in-text mentions
63
distinct cited
0
self-citations
16,015
main-text words

appendix boundary found by appendix_command · 53% of the source is main text. Read the extracted text to check this.

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
1Krishna, V (2009) Auction theory0.9507386%
2Guerre, E., I. Perrigne, and Q. Vuong (2000) Optimal nonparametric estimation of first-price auctions0.9416483%
3de Haan, L. and A. Ferreira (2006) Extreme value theory: an introduction0.87412467%
4Guerre, E. and Y. Luo (2022) Nonparametric Identification of First-Price Auction with Unobserved Competition: A Density Discontinuity Framework0.87452100%
5Müller, U. K. and Y. Wang (2017) Fixed-$k$ asymptotic inference about tail properties0.8226283%
6Elliott, G., U. K. Müller, and M. W. Watson (2015) Nearly optimal tests when a nuisance parameter is present under the null hypothesis0.7373367%
7Haile, P. A. and E. Tamer (2003) Inference with an incomplete model of English auctions0.73732100%
8Maskin, E. and J. G. Riley (1984) Optimal auction with risk averse buyers0.64422100%
9Li, T., I. Perrigne, and Q. Vuong (2000) Conditionally independent private information in OCS wildcat auctions0.64422100%
10Müller, U. K (2011) Efficient tests under a weak convergence assumption0.5114225%

Showing the top 10 of 63 scored citations.