Complements and substitutes in sequential auctions: the case of water auctions.

Abstract: We use data on sequential water auctions to estimate demand when units are complements or substitutes. A sequential English auction model determines the estimating structural equations. When units are complements, one bidder wins all units by paying a high price for the first unit, thus de...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 1; pp. 87 - 128
Autores principales: Donna, Javier D., Espín‐Sánchez, José‐Antonio
Formato: Artículo
Publicado: Wiley-Blackwell Spring2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Complements and substitutes in sequential auctions: the case of water auctions.
      aug:
        au:
          Donna, Javier D.
          Espín‐Sánchez, José‐Antonio
        affil:
          The Ohio State University
          Yale University
      su:
        Economic demand
        Weather
        Multivariate analysis
        Agricultural productivity
        Structural equation modeling
      sug:
        subj:
          Economic demand
          Weather
          Multivariate analysis
          Agricultural productivity
          Structural equation modeling
      ab: Abstract: We use data on sequential water auctions to estimate demand when units are complements or substitutes. A sequential English auction model determines the estimating structural equations. When units are complements, one bidder wins all units by paying a high price for the first unit, thus deterring others from bidding on subsequent units. When units are substitutes, different bidders win the units with positive probability, paying prices similar in magnitude. We recover individual demand consistent with this stark pattern of outcomes and confirm it is not collusive but consistent with noncooperative behavior. Demand estimates are biased if one ignores these features.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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