How to Set Minimum Acceptable Bids, with an Application to Real Estate Auctions
42 Pages Posted: 17 Jul 2002
There are 2 versions of this paper
How to Set Minimum Acceptable Bids, with an Application to Real Estate Auctions
Abstract
In a general auction model with affiliated signals, common components to valuations and endogenous entry, we compute the equilibrium bidding strategies and outcomes, and derive a lower bound on the optimal reserve price. This lower bound can be computed using data on past auctions combined with information about the subsequent sales prices of unsold goods. We illustrate how to compute the lower bound using data from real estate auctions.
Keywords: Auctions, Optimal Reserve Price, Real Estate
JEL Classification: D44
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Inference with an Incomplete Model of English Auctions
By Philip A. Haile and Elie T. Tamer
-
Empirical Implications of Equilibrium Bidding in First-Price, Symmetric, Common Value Auctions
By Kenneth Hendricks, Joris Pinkse, ...
-
Empirical Implications of Equilibrium Bidding in First-Price, Symmetric, Common Value Auctions
By Kenneth Hendricks, Joris Pinkse, ...
-
Nonparametric Tests for Common Values at First-Price Sealed-Bid Auctions
By Philip A. Haile, Han Hong, ...
-
The Role of Information in U.S. Offshore Oil and Gas Lease Auctions
-
Nonparametric Tests for Common Values in Fixed-Price Sealed-Bid Auctions
By Philip A. Haile, Han Hong, ...
-
Comparing Open and Sealed Bid Auctions: Evidence from Timber Auctions
By Susan Athey, Jonathan Levin, ...
-
Are Structural Estimates of Auction Models Reasonable? Evidence from Experimental Data
By Patrick Bajari and Ali Hortacsu