Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/49895
Authors: 
Hu, Yingyao
McAdams, David
Shum, Matthew
Year of Publication: 
2009
Series/Report no.: 
Working papers // the Johns Hopkins University, Department of Economics 553
Abstract: 
We propose a novel methodology for nonparametric identification of first-price auction models with independent private values, which accommodates auction-specific unobserved heterogeneity and bidder asymmetries, based on recent results from the econometric literature on nonclassical measurement error in Hu and Schennach (2008). Unlike Krasnokutskaya (2009), we do not require that equilibrium bids scale with the unobserved heterogeneity. Our approach accommodates a wide variety of applications, including settings in which there is an unobserved reserve price, an unobserved cost of bidding, or an unobserved number of bidders, as well as those in which the econometrician fails to observe some factor with a non-multiplicative effect on bidder values.
Document Type: 
Working Paper

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