Econometrics of Auctions and Nonlinear Pricing

Isabelle Perrigne, Quang Vuong

    Research output: Contribution to journalReview article

    Abstract

    This review surveys the growing literature on the econometrics of first-price sealed-bid auctions and nonlinear pricing. The complexity of the economic models has initiated fruitful collaborations between econometrics and empirical research. We review the benchmark models and their extensions, the identification of the model primitives, and their nonparametric and semiparametric estimation. We discuss the future of the field, which goes beyond auctions and nonlinear pricing, as both can be viewed as economic mechanisms for price formation, allocation, and market organization.

    Original languageEnglish (US)
    Pages (from-to)27-54
    Number of pages28
    JournalAnnual Review of Economics
    Volume11
    DOIs
    StatePublished - Aug 2 2019

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    Keywords

    • first-price sealed-bid auctions
    • identification
    • incomplete information models
    • nonlinear pricing
    • nonparametric estimation
    • semiparametric estimation
    • structural models

    ASJC Scopus subject areas

    • Economics and Econometrics

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