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| Preface | |
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| Focus of the Book | |
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| Who Should Read This Book? | |
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| Material We Intend to Presume | |
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| What a Learner Will Know | |
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| Notation | |
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| Comments and Suggestions | |
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| Acknowledgments | |
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| Introduction | |
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| An Example | |
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| Some Intriguing Problems | |
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| Plan of Book | |
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| Practice Problems | |
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| Overview of Auction Theory | |
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| Auction Formats and Rules | |
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| Oral, Ascending-Price (English) Format | |
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| First-Price, Sealed-Bid Format | |
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| Oral, Descending-Price (Dutch) Format | |
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| Second-Price, Sealed-Bid (Vickrey) Format | |
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| Additional Rules | |
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| Information Structure | |
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| Independent Private-Values Paradigm | |
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| Common-Value Paradigm | |
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| Affiliated-Values Paradigm | |
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| Asymmetries | |
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| Bidder Preferences | |
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| Purposeful Bidding and Game Equilibrium | |
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| Vickrey Auctions | |
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| English Auctions | |
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| Dutch and First-Price, Sealed-Bid Auctions | |
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| A Binding Reserve Price | |
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| Expected Revenues and Optimal Auctions | |
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| Revenue Equivalence Proposition | |
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| Optimal Reserve Price | |
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| Expected Revenues under Risk Aversion | |
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| Optimal Auctions | |
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| Winner's Curse | |
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| Practice Problems | |
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| Vickrey and English Auctions | |
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| Nonparametric Identification and Estimation | |
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| Covariates | |
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| Single-Index Models: Semiparametric Estimation | |
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| Density-Weighted Derivative Estimator | |
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| Maximum Rank-Correlation Estimator | |
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| Reserve Prices and Parametric Estimation | |
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| Policy Application | |
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| Some Institutional Background | |
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| Bidding of Timber in British Columbia | |
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| Defense of IPVP Assumption | |
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| Mapping Observables into Bids | |
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| Deriving the Empirical Specification | |
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| Implementing the Empirical Specification | |
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| Estimates of the Optimal Reserve Price | |
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| Incomplete Data | |
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| Incomplete Inference | |
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| Asymmetric Bidders | |
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| Nonparametric Identification | |
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| Semi-Nonparametric Estimation | |
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| Practice Problems | |
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| First-Price, Sealed-Bid and Dutch Auctions | |
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| Deriving the Data-Generating Process | |
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| Identification and Estimation: Simplest Case | |
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| Nonparametric Identification | |
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| Nonparametric Estimation | |
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| Maximum Likelihood Estimation | |
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| Simulated Nonlinear Least-Squares | |
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| Extreme-Order, Generalized Method-of-Moments | |
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| Binding Reserve Price | |
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| Risk-Averse Bidders | |
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| Parametric Identification and Estimation | |
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| Semiparametric Identification and Estimation | |
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| Stochastic Private Values | |
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| Asymmetric Bidders | |
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| First-Price, Sealed-Bid Auctions | |
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| Dutch Auctions | |
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| Unobserved Heterogeneity | |
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| Policy Experiment | |
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| Some Institutional Background | |
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| Empirical Results | |
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| Comparing Institutions | |
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| Another Way to Solve Asymmetric Auctions | |
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| Endogenous Bidding Participation | |
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| Practice Problems | |
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| Multi-Unit Auctions | |
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| Weber's Classification System | |
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| Simultaneous-Dependent Auctions | |
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| Simultaneous-Independent Auctions | |
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| Sequential Auctions | |
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| Pricing Rules | |
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| Shading and Demand Reduction | |
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| Generalized Vickrey Auction | |
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| Ausubel Auction | |
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| Singleton Demand | |
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| Multi-Unit Demand | |
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| Nonrandom Demand | |
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| Random Demand | |
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| Sequential, Clock Auctions: Random Demand | |
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| Two-Bidder, Two-Unit Example | |
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| Two-Bidder, Three-Unit Example | |
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| Demand-Generation Scheme | |
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| Solving the Auction Game | |
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| Properties of the Equilibrium | |
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| Estimating the Model | |
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| Sequential, Clock Auctions: Nonrandom Demand | |
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| Nonparametric Identification | |
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| Semi-Nonparametric Estimator | |
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| Practice Problems | |
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| Directions for Further Research | |
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| Simultaneous, Dependent, Sealed-Bid Auctions | |
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| Infinitely Lived Auction Games | |
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| Multi-Object Auctions | |
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| Summary | |
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| Appendixes | |
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| Transformations of Random Variables | |
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| Linear Transformations | |
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| Monotonic Nonlinear Transformations | |
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| Order Statistics | |
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| Independent and Identically Distributed Case | |
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| General Independent Case | |
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| Simulation | |
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| Distribution of Cumulative Distribution Functions | |
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| Generating Random Numbers | |
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| Pseudo-Random Numbers | |
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| Asymptotic Methods: Some Elementary Tools | |
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| Parameter Consistency: Laws of Large Numbers | |
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| Asymptotic Normality: Central Limit Theorems | |
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| Continuous Mapping Theorem | |
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| Delta Method | |
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| Extreme Value Theorems | |
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| Evaluating Estimators | |
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| Finite-Sample Properties | |
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| Unbiasedness | |
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| Variance | |
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| Mean Squared-Error | |
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| Large-Sample Properties | |
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| Parameter Consistency | |
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| Asymptotic Distribution | |
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| The Bootstrap | |
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| Estimation Strategies | |
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| Generalized Method of Moments | |
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| Definition | |
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| Parameter Consistency/Asymptotic Normality | |
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| Testing Over-Identifying Restrictions | |
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| Method of Maximum Likelihood | |
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| Definition | |
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| Parameter Consistency/Asymptotic Normality | |
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| Nonparametric Estimation | |
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| Histogram | |
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| Kernel-Smoothed Density Functions | |
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| Empirical Distribution Function | |
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| Bandwidth Choice | |
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| Asymptotic Distribution of Order Statistics | |
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| Characteristic Functions: Deconvolution Methods | |
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| Numerical Methods | |
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| Finding the Zero of a Function | |
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| Bisection Method | |
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| Newton's Method | |
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| Unconstrained Optimization | |
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| Constrained Optimization | |
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| Numerical Integration | |
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| Newton-Cotes Formulae | |
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| Approximation Methods | |
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| A High-Level Programming Environment | |
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| Getting Started | |
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| The Interface | |
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| Loading and Cataloging Data | |
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| Manipulating Data | |
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| Basic Matrix Functions | |
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| Linear Systems | |
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| Two-Dimensional Plotting | |
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| Three-Dimensional Plotting | |
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| Statistics Toolbox | |
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| Descriptive Statistics | |
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| Pseudo-Random Number Generators | |
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| Probability Density Functions | |
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| Cumulative Distribution Functions | |
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| Bootstrapping | |
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| User-Defined Functions | |
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| A Generic Function | |
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| Writing a User-Defined Function | |
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| Another User-Defined Function | |
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| Optimization Toolbox | |
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| Driver Files and Objective Functions | |
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| Gradient Vectors and Hessian Matrices | |
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| Unconstrained Optimization | |
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| Constrained Optimization | |
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| Algorithm Options: optimset | |
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| References | |
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| Solutions | |
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| Logarithmic Series | |
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| Log-Normal Estimation | |
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| Logarithmic Series with Covariates | |
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| Practice with the Bootstrap | |
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| Approximating Functions | |
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| Approximating Integrals | |
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| Uniform Case: Risk Neutrality, No Reserve | |
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| Uniform Case: Risk Neutrality, Positive Reserve | |
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| Uniform Case: Risk Aversion, No Reserve | |
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| Procurement with Independent, Private Costs | |
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| All-Pay Auction | |
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| Test Scores within the Location-Scale Family | |
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| Vickrey Auctions and the Location-Scale Family | |
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| ML Estimation of Vickrey Auctions | |
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| Nonparametric Estimation of English Auctions | |
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| English Auctions: Incomplete Data and Inference | |
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| Uniform Case: First-Price, Sealed-Bid Auctions | |
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| Pareto Case: Low-Price, Sealed-Bid Auctions | |
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| Government Procurement | |
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| Solving Asymmetric Auctions | |
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| Generalized Vickrey Auctions | |
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| Multi-Unit, Sequential, Clock Auctions | |
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| Name Index | |
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| Subject Index | |