A Structural Analysis of Wholesale Used-Car Auctions: Nonparametric Testing of Valuations with Unknown Number of Bidders

• 영문명: A Structural Analysis of Wholesale Used-Car Auctions: Nonparametric Testing of Valuations with Unknown Number of Bidders
• 발행기관: 한국계량경제학회
• 저자명: Kyoo il Kim Joonsuk Lee
• 간행물 정보: 『한국계량경제학회 학술대회 논문집』2008년 하계학술대회, 1~61쪽, 전체 61쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2008.08.30

영문 초록

Wholesale used-car markets have widely utilized ascending auctions for trading dealers’inventories. To study the latent demand structure of these markets, one needs to recover the underlying valuations of dealers from the bidding data observed at the auctions. Exploiting a new, rich data set on a wholesale used-car auction, we estimate the distribution of bidders’ valuations nonparametrically under the symmetric independent private values (IPV) framework and nonparametrically test the validity of the IPV assumption. We show the testability of the symmetric IPV when the number of potential bidders is unknown and even when it can be different across auctions. This means our result allows for endogenous participations to auctions. Then, we develop a nonparametric test of such valuation paradigm. Unlike previous work on ascending auctions, our estimation and testing methods use more information from observed losing bids by virtue of the rich structure of our data. We …nd that the null hypothesis of IPV is not rejected with our sample after controlling for observed auction heterogeneity and therefore our estimation result is a good approximation of the underlying distribution of dealers’ valuations.

목차

1 Introduction

2 Wholesale Used-car Auctions

3 Data

4 Empirical Model and Identi…cation

5 Estimation

6 Nonparametric Testing

7 Empirical Results

8 Implications and Discussions

9 Conclusions

키워드

Used-car auctions Ascending auctions Unknown number of bidders nonparametric testing of valuations SNP density estimation