Identification of interdependent values in sequential first-price auctions

Daniel Bougt, Gagan Ghosh, Heng Liu*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review


We revisit the (non-)identification of affiliated interdependent-value auctions from the perspective of sequential auctions introduced by Milgrom and Weber (2000). In contrast to static auctions, prices in early rounds affect bidding in later rounds in sequential auctions, generating enough variation for testing interdependent against private values and model identification. We develop nonparametric tests and identification results by exploring the functional dependence of the pseudo values in later rounds on the prices in early rounds. We also discuss applications and extensions of our results, including cases of non-identical goods, observed covariates and unobserved heterogeneity.
Original languageEnglish
Article number103033
Peer-reviewed scientific journalInternational Journal of Industrial Organization
Publication statusPublished - 18.11.2023
MoE publication typeA1 Journal article - refereed


  • 511 Economics


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