IDENTIFICATION AND ESTIMATION OF AUCTION MODEL WITH TWO-DIMENSIONAL UNOBSERVED HETEROGENEITY

• 成果类型: Article
• 署名作者: Krasnokutskaya, Elena
• 署名单位: Johns Hopkins University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2012.00696.x
• 发表日期: 2012
• 页码: 659-692
• 关键词: 1st-price auctions; empirical-models; COMPETITION

摘要

This article investigates the empirical importance of allowing for multidimensional sources of unobserved heterogeneity in auction models with private information. It develops the estimation procedure to recover the distribution of private information in the presence of two sources of unobserved heterogeneity. It is shown that this estimation procedure identifies components of the model and produces uniformly consistent estimators of these components. The results of the estimation with highway procurement data indicate that allowing for two-dimensional unobserved heterogeneity may significantly affect the results of estimation as well as policy-relevant instruments derived from the estimated distributions of bidders costs.