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Public Lectures on Structural Econometrics - CEMMAP masterclass - 28/02/21 - Shared screen with speaker view
Alex P. Arsenault-Morin
So what happens when we have a private and a common component in x_n?
Marco Pariguana
Is the non-identification coming from x_n’ affecting the individual valuation and the probability of getting the good?
Vasilis Pappas
So it looks like an ebay type of auction, but the "product" is divisible?
Naouar el khadiri
I have issues to understand the ordering in this mechanism given that there is different parcels.
Alex P. Arsenault-Morin
Am I missing something or is there a lot of people submitting bids that are losing bids at the time?
Elena Pastorino
@Alex: Bob is explaining what you are asking. Let me know if you would still like to ask your question. Thanks!
Alex P. Arsenault-Morin
Yes just noticed that, that answers my question, thank you
Vasilis Pappas
Is this ONM rate averaged across parcels? Or is it a single rate?
Elena Pastorino
@Alex: sounds good
Alex P. Arsenault-Morin
@Vasilis I believe it is a single bid, the last bid that would win if auction ended at that time
Vasilis Pappas
@Alex yes maybe, but I thought that each, say, 7m parcel would have its own rate. Then its dynamics would be similar to the earlier graph
Handy Tan
Is it perhaps similar to Tour de France, where there are cyclists who want to be up ahead to increase the gap leaving everybody else behind, but then similar at the end where everybody is racing to the winning point?
Alex P. Arsenault-Morin
Should we think of those early bids as being made by banks with a different strategy than those who send last minute bids?
Dmitry Khametshin
How would the frictionless case look like if there was a common component?
Vasilis Pappas
@Alex I think it is interesting to see how many of the first bidders end as winning bids?