In this paper, we estimate the inefficiency in online auctions. Online auctions can be inefficient due to the Internet fraud. A typical example of Internet fraud is when sellers do not send goods to winning bidders even though they have received payment. Therefore, bidders always bear a risk of...

We develop approximate estimation methods for exponential random graph models (ERGMs), whose likelihood is proportional to an intractable normalizing constant. The usual approach approximates this constant with Monte Carlo simulations, however convergence may be exponentially slow. We propose a...

The strategy frequency estimation method (Dal B´o and Fr´echette, 2011) allows us to estimate the fraction of subjects playing each of a list of strategies in an infinitely repeated game. Currently, this method assumes that subjects tremble with the same probability. This paper extends this...

This paper develops a dynamic model of retail competition and uses it to study the impact of the expansion of a new national competitor on the structure of urban markets. In order to accommodate substantial heterogeneity (both observed and unobserved) across agents and markets, the paper first...

The Two-Stage Least squares method for obtaining the estimated structural coefficients of a simultaneous linear equations model is a celebrated method that uses OLS at the first stage for estimating the reduced form coefficients and obtaining the expected values in the arrays of current...

Identification of multinomial choice models is often established by using special covariates that have full support. This paper shows how these identification results can be extended to a large class of multinomial choice models when all covariates are bounded. I also provide a new...

Imposing equilibrium restrictions provides substantial gains in the estimation of dynamic discrete games. Estimation algorithms imposing these restrictions have different merits and limitations. Algorithms that guarantee local convergence typically require the approximation of high-dimensional...

Analyses of treatments, experiments, policies, and observational data, are confounded when people's treatment outcomes and/or participation decisions are influenced by those of their friends and acquaintances. This invalidates standard matching techniques as estimation tools. For instance, the...

We address the estimation of sample selection and endogenous treatment models with social interactions. To model the interaction between individuals in an internally consistent matter we employ a game theoretic approach based on the use of a discrete Bayesian game. We overcome the substantial...

In laboratory experiments bidding in first-price auctions is more aggressive than predicted by the risk-neutral Bayesian Nash Equilibrium (RNBNE) - a finding known as the overbidding puzzle. Several models have been proposed to explain the overbidding puzzle, but no canonical alternative to...