In first-price sealed-bid auctions, a power probability weighting function is observationally equivalent to a model of constant absolute risk aversion. By comparing auctions with different ceilings on a computerized opponent’s bid space, we can separate subjective probability weighting and...

We establish nonparametric identification of auction models with continuous unobserved heterogeneity using three consecutive order statistics of bids. We then propose sieve maximum likelihood estimators for estimating the unobserved heterogeneity distribution and the value distributions jointly....

We analyse procurement auctions in which sellers are distinguished on the basis of the ratios of quality per unit of money that they offer. Sellers are privately informed on the offered quality of the technology or good. We assume that the procurer cannot perfectly identify the best offer. Thus,...