LEEM Seminar - Andreas Hefti (Univ. of Zurich)

Quand ? Le 21-11-2018,
de 12:00 à 14:00
Où ? Salle SCI - ISEM
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Séminaire LEEM

Andreas Hefti (Univ. of Zurich)

Title: "Market power and information effects in a multi-unit auction“.

Abstract: We study the differential effects of different information structures (full information, cost uncertainty and demand uncertainty) and different levels and types of market power on equilibrium prices, allocative efficiency and bidding behavior in a uniform-price multi-unit auctions, using a supply function equilibrium approach and a novel experimental design. As predicted by theory, the experimental data shows that limited information, particularly cost uncertainty, reduces the exertion of market power and bid shading, leading to lower average prices than with full information. Further, we exploit the equilibrium conditions to estimate the supply functions within a restricted least squares framework, and find that the predicted prices tend to outperform those of standard OLS.