Are Structural Estimates of Auction Models Reasonable? Evidence from Experimental Data - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Are Structural Estimates of Auction Models Reasonable? Evidence from Experimental Data write by Patrick Bajari. This book was released on 2005. Are Structural Estimates of Auction Models Reasonable? Evidence from Experimental Data available in PDF, EPUB and Kindle. Recently, economists have developed methods for structural estimation of auction models. Many researchers object to these methods because they find the strict rationality assumptions to be implausible. Using bid data from first-price auction experiments, we estimate four alternative structural models:(1) risk-neutral Bayes-Nash, (2) risk-averse Bayes-Nash, (3) a model of learning, and (4) a quantal response model of bidding. For each model, we compare the estimated valuations and the valuations assigned to bidders in the experiments. We find that the risk aversion model is able to generate reasonable estimates of bidder valuations.
Are Structural Estimates of Auction Models Reasonable? Evidence Form Experimental Data
Are Structural Estimates of Auction Models Reasonable? Evidence Form Experimental Data - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Are Structural Estimates of Auction Models Reasonable? Evidence Form Experimental Data write by Patrick L. Bajari. This book was released on 2003. Are Structural Estimates of Auction Models Reasonable? Evidence Form Experimental Data available in PDF, EPUB and Kindle.
Are Structural Estimates of Auction Models Reasonable?
Are Structural Estimates of Auction Models Reasonable? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Are Structural Estimates of Auction Models Reasonable? write by Patrick Bajari. This book was released on 2003. Are Structural Estimates of Auction Models Reasonable? available in PDF, EPUB and Kindle. Recently, economists have developed methods for structural estimation of auction models. Many researchers object to these methods because they find the rationality assumptions used in these models to be implausible. In this paper, we explore whether structural auction models can generate reasonable estimates of bidders' private information. Using bid data from auction experiments, we estimate four alternative structural models of bidding in first-price sealed-bid auctions: 1) risk neutral Bayes-Nash, 2) risk averse Bayes-Nash, 3) a model of learning and 4) a quantal response model of bidding. For each model, we compare the estimated valuations and the valuations assigned to bidders in the experiments. We find that a slight modification of Guerre, Perrigne and Vuong's (2000) procedure for estimating the risk neutral Bayes-Nash model to allow for bidder asymmetries generates quite reasonable estimates of the structural parameters.
Estimation of Structural Models Using Experimental Data From the Lab and the Field
Estimation of Structural Models Using Experimental Data From the Lab and the Field - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Estimation of Structural Models Using Experimental Data From the Lab and the Field write by Charles Bellemare. This book was released on 2023-02-09. Estimation of Structural Models Using Experimental Data From the Lab and the Field available in PDF, EPUB and Kindle. Behavioral economics provides a rich set of explicit models of non-classical preferences and belief formation which can be used to estimate structural models of decision making. At the same time, experimental approaches allow the researcher to exogenously vary components of the decision making environment. The synergies between behavioral and experimental economics provide a natural setting for the estimation of structural models. This Element will cover examples supporting the following arguments 1) Experimental data allows the researcher to estimate structural models under weaker assumptions and can simplify their estimation, 2) many popular models in behavioral economics can be estimated without any programming skills using existing software, 3) experimental methods are useful to validate structural models. This Element aims to facilitate adoption of structural modelling by providing Stata codes to replicate some of the empirical illustrations that are presented. Examples covered include estimation of outcome-based preferences, belief-dependent preferences and risk preferences.
Structural Econometric Modeling in Industrial Organization and Quantitative Marketing
Structural Econometric Modeling in Industrial Organization and Quantitative Marketing - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Structural Econometric Modeling in Industrial Organization and Quantitative Marketing write by Ali Hortaçsu. This book was released on 2023-10-24. Structural Econometric Modeling in Industrial Organization and Quantitative Marketing available in PDF, EPUB and Kindle. "Within economics a relatively new way of modeling has dominated important subfields: structural modeling. The goal of this book is to give an overview on how the various streams of literatures in empirical industrial organization and quantitative marketing use structural econometric modeling to estimate the model parameters, give the economic-model-based predictions, and conduct the policy counterfactual experiments. The traditional way of modelling, called "reduced-form" builds its models from simple relationships between variables of interests, which are mostly linear. Structural econometric models start by specifying the structure of the economic model, and the variables are calibrated from real-world data. This method enables better predictions and policy counterfactuals, and has other benefits. When considering a hypothetical policy change using the traditional modeling method ("reduced form"), researchers can often only estimate whether an effect would be positive or negative. With a structural econometric model using real-world data, a researcher can obtain the magnitude of the effects resulting from a hypothetical change. But the ability of quantifying the effects associated with a hypothetical policy change comes with its costs: the nonlinearity from explicitly specifying the possible relationships makes the structural econometric approach generally much more difficult to implement than its reduced-form counterpart. Therefore this book will provide a much-needed resource on how to use these methods effectively in the fields in which they been used the most, empirical industrial organization and quantitative marketing"--
