Hu, Yingyao; McAdams, David; Shum, Matthew - In: Journal of Econometrics 174 (2013) 2, pp. 186-193
We propose a novel methodology for identification of first-price auctions, when bidders’ private valuations are independent conditional on one-dimensional unobserved heterogeneity. We extend the existing literature (Li and Vuong, 1998; Krasnokutskaya, 2011) by allowing the unobserved heterogeneity...