Download This PaperCompetition, Endogeneity and the Winning Bid: An Empirical Analysis of Ebay Auctions
10 Pages Posted: 27 Dec 2011 Last revised: 30 Oct 2014
Date Written: October 1, 2011
Abstract
Using online auction data, we address the endogeneity involved in estimating the eff ect of the number of bidders on the winning bid. We introduce a novel instrumental variable. Our results indicate that the bias arising from treating the number of bidders as exogenous, is substantial.
Keywords: online auctions, eBay, endogeneity, 2SLS, LIML
JEL Classification: D44, C36
Suggested Citation: Suggested Citation
Velamuri, Malathi and Onur, Ilke, Competition, Endogeneity and the Winning Bid: An Empirical Analysis of Ebay Auctions (October 1, 2011). Available at SSRN: https://ssrn.com/abstract=1977175 or http://dx.doi.org/10.2139/ssrn.1977175
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