Semiparametric Estimation in Models of First-price , Sealed-bid Auctions with Affiliation ∗

@inproceedings{Li2007SemiparametricEI,
  title={Semiparametric Estimation in Models of First-price , Sealed-bid Auctions with Affiliation ∗},
  author={Tong Li and Harry J. Paarsch and Timothy Hubbard},
  year={2007}
}
Within the affiliated private-values paradigm, we develop a tractable empirical model of equilibrium behaviour at first-price, sealed-bid auctions. The model is nonparametrically identified, but estimating the primitives is plagued by the curse of dimensionality when the number of bidders is even modestly large, so we develop a semiparametric estimation strategy, focusing on the Archimedean family of copulas and implementing this framework using a particular member—the Frank copula. We apply… CONTINUE READING
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