Competition, Endogeneity and the Winning Bid: An Empirical Analysis of Ebay Auctions
Malathi R. Velamuri
affiliation not provided to SSRN
University of South Australia
October 1, 2011
Using online auction data, we address the endogeneity involved in estimating the effect of the number of bidders on the winning bid. We introduce a novel instrumental variable. Our results indicate that the bias arising from treating the number of bidders as exogenous, is substantial.
Number of Pages in PDF File: 10
Keywords: online auctions, eBay, endogeneity, 2SLS, LIML
JEL Classification: D44, C36working papers series
Date posted: December 27, 2011
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