Drichoutis, Andreas and Nayga, Rodolfo and Lazaridis, Panagiotis and Park, Beom Su (2010): A consistent econometric test for bid interdependence in repeated second-price auctions with posted prices.
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In repeated second-price experimental auctions, the winning bid is normally posted after each round. The posting of these winning prices after each round can result in bids submitted in later rounds to be interdependent with posted prices from earlier rounds. Several approaches in the past have tried to scrutinize their experimental data for value interdependence by regressing bids on lagged market prices or lagged bids and ignoring the inherent endogeneity problem. This paper introduces a formal test for bid interdependence in repeated second-price auctions with posted prices using a dynamic panel model. We then apply this test to formally check the presence of bid interdependence in three datasets used in previous studies.
|Item Type:||MPRA Paper|
|Original Title:||A consistent econometric test for bid interdependence in repeated second-price auctions with posted prices|
|Keywords:||experimental auctions; bid interdependence; dynamic panel estimator; second-price auction|
|Subjects:||C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C33 - Models with Panel Data; Longitudinal Data; Spatial Time Series
C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics
|Depositing User:||Andreas Drichoutis|
|Date Deposited:||09. May 2010 01:34|
|Last Modified:||19. Feb 2013 10:45|
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