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We study the identification and estimation of first-price auctions with independent private values if bidders face … evidence of ambiguity in timber auctions in the Pacific Northwest …
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A crucial assumption in the optimal auction literature is that each bidder's valuation is known to be drawn from a unique distribution. In this paper we study the optimal auction problem allowing for ambiguity about the distribution of valuations. Agents may be ambiguity averse (modeled using...
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Auctions often involve goods exhibiting a common knowledge ex-post risk. Precautionary bidding predicts that under … experimental auctions that allow to identify the precautionary premium directly. We find strong evidence for precautionary bidding …
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