✦ LIBER ✦

Posterior odds comparison of a symmetric low-price, sealed-bid auction within the common-value and the independent-private-values paradigms

✍ Scribed by Samita Sareen

Publisher: John Wiley and Sons
Year: 1999
Tongue: English
Weight: 255 KB
Volume: 14
Category: Article
ISSN: 0883-7252
DOI: 10.1002/(sici)1099-1255(199911/12)14:6<651::aid-jae539>3.0.co;2-m

No coin nor oath required. For personal study only.

✦ Synopsis

I attempt to decide, using the posterior odds ratio, whether the symmetric common-value paradigm or the symmetric independent-private-values paradigm is a more probable explanation of the low-price, sealed-bid auctions conducted by the Indian Oil Corporation to purchase crude-oil from the international market. The estimation approach is structural parametric. The auctions are modelled as static non-cooperative games of incomplete information with risk neutral bidders. I conclude that the symmetric independent-private-values paradigm is more probable.