Estimates of valuation distributions in internet auctions through structural empirical analysis

Abstract

Empirical methods using the potential number of bidders and contract price have been used in the past, for instance, in an analysis of auctions based on the independent private values paradigm. This paper uses H. J. Paarsch’s (1997) structural empirical model to estimate valuations in internet auctions wherein the potential number of bidders is unavailable and examine factors that impact valuations.