@article{b6f2e01331cb46f5bf847401d5d876d0,
title = "Identification of interdependent values in sequential first-price auctions",
abstract = "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.",
keywords = "511 Economics",
author = "Daniel Bougt and Gagan Ghosh and Heng Liu",
note = "Funding Information: Acknowledgment: We are grateful to the editor, Matthew Gentry, and two anonymous referees for their feedback which substantially improved the paper. We also thank Tilman B{\"o}rgers, Ying Fan, Elena Krasnokutskaya, Yao Luo, Ruli Xiao, Daiqiang Zhang, and participants at Michigan, IIOC 2021, Econometric Society China meeting 2021, and Conference on Auctions, Firm Behavior, and Policy at Colby College for helpful comments. Daniel Bougt gratefully acknowledges financial support from Torsten S{\"o}derbergs Stiftelse E21/19 . Funding Information: Acknowledgment: We are grateful to the editor, Matthew Gentry, and two anonymous referees for their feedback which substantially improved the paper. We also thank Tilman B{\"o}rgers, Ying Fan, Elena Krasnokutskaya, Yao Luo, Ruli Xiao, Daiqiang Zhang, and participants at Michigan, IIOC 2021, Econometric Society China meeting 2021, and Conference on Auctions, Firm Behavior, and Policy at Colby College for helpful comments. Daniel Bougt gratefully acknowledges financial support from Torsten S{\"o}derbergs Stiftelse E21/19. Publisher Copyright: {\textcopyright} 2023 Elsevier B.V.",
year = "2023",
month = nov,
day = "18",
doi = "10.1016/j.ijindorg.2023.103033",
language = "English",
volume = "91",
journal = "International Journal of Industrial Organization",
issn = "0167-7187",
publisher = "Elsevier BV * North-Holland",
}