The bidder exclusion effect

A-Tier
Journal: RAND Journal of Economics
Year: 2019
Volume: 50
Issue: 1
Pages: 93-120

Authors (3)

Dominic Coey (not in RePEc) Bradley Larsen (National Bureau of Economic Re...) Kane Sweeney (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We introduce a new, simple‐to‐compute test of independence of valuations and the number of bidders for ascending button auctions with symmetric, conditionally independent private values. The test involves estimating the expected revenue drop from excluding a bidder at random, which can be computed as a scaled sample average of a difference of order statistics. This object also provides a bound on counterfactual revenue changes from optimal reserve pricing or bidder mergers. We illustrate the approach using data from timber auctions, where we find some evidence that bidder valuations and the number of participants are not independent.

Technical Details

RePEc Handle
repec:bla:randje:v:50:y:2019:i:1:p:93-120
Journal Field
Industrial Organization
Author Count
3
Added to Database
2026-01-25