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Using online auction data, we address the endogeneity involved in estimating the eff ect of the number of bidders on the winning bid. We introduce a novel instrumental variable. Our results indicate that the bias arising from treating the number of bidders as exogenous, is substantial
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I examine the effect of competition on eBay Motors. I specify a simple model of auction choice and show that the …,500 auctions for Chevrolet Corvettes. To address potential endogeneity of the level of competition, I introduce an instrument which …
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