Andrew Chesher

Professor Andrew Chesher

Research Fellow

Education:

BSocSc Mathematics, Economics & Statistics, University of Birmingham, 1970

ORCID: 0000-0001-9646-3955

Andrew is the Director of the ESRC Centre for Microdata Methods and Practice (Cemmap) and William Stanley Jevons Professor of Economics and Economic Measurement at University College London. He is a Fellow of the British Academy, Fellow of the Econometric Society and Honorary Foreign Member of the American Economic Association. His research interests cover many aspects of microeconometric theory and practice with currently an emphasis on identification analysis and instrumental variable models and methods.

 

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External web page: University College London

Incomplete English auction models with heterogeneity

| Working Paper

This paper studies identification and estimation of the distribution of bidder valuations in an incomplete model of English auctions. As in Haile and Tamer (2003) bidders are assumed to (i) bid no more than their valuations and (ii) never let an opponent win at a price they are willing to beat. Unlike the model studied by Haile and Tamer (2003), the requirement of independent private values is dropped, enabling the use of these restrictions on bidder behavior with affiliated private values, for example through the presence of auction specifi…c unobservable heterogeneity. In addition, a semiparametric index restriction on the effect of auction-specifi…c observable heterogeneity is incorporated, which, relative to nonparametric methods, can be help- ful in alleviating the curse of dimensionality with a moderate or large number of covariates. The identification analysis employs results from Chesher and Rosen (2017) to characterize identified sets for bidder valuation distributions and functionals thereof.

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