This paper proposes an estimation method for a repeated auction game under the presence of capacity contraints. The … asymmetry, the auction can be inefficient. Based on the estimates of costs, we quantify efficiency losses …

This paper proposes an estimation method for a repeated auction game under the presence of capacity contraints. The … asymmetry, the auction can be inefficient. Based on the estimates of costs, we quantify efficiency losses …

, and compare the employment of the winner of an auction with the employment of the second ranked firm (i.e. the runner …-up firm). Assuming similar ex-ante winning probabilities for both firms, we may view winning an auction as an exogenous shock … labor demand in the weeks following an auction but only in the years before the recent economic crisis. It employs about 80 …