Abstract – This paper suggests an identi_cation and estimation approach based on quantile regression to recover the underlying distribution of bidders’ private values in ascending auctions under the IPV paradigm. The quantile regression approach provides a exible and convenient parametrization of the private values distribution, with an estimation methodology easy to implement and with several speci_cation tests. The quantile framework provides a new focus on the quantile level of the private values distribution, in particular the seller’s optimal screening level, which can be very useful for bidders and seller. An empirical application using data from the USFS timber auctions illustrates the methodology.
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WP014 – How to Use Demand Systems to Evaluate Risky Projects With an Application to the Automobile Industry
janeiro 7, 2010