Rutgers University, Economics Working Paper
35 Pages Posted: 8 Nov 2001
Date Written: November 2001
We estimate demand for personal computer processors using structural estimation of valuations and data from Internet multi-object discriminatory auctions. Three models of bidding and a suitable econometric procedure are used to compute the parameters that govern the distribution of the buyers' marginal valuations. We use our estimates to assess the impact of processor-specific variables on demand and to provide an estimate of the cost of bidding.
Keywords: Structural estimation, multi-unit auctions, semi-parametric methods
JEL Classification: D44, C14
Suggested Citation: Suggested Citation
Carare, Octavian, Need for Speed: Demand Estimation Using Auction Data (November 2001). Rutgers University, Economics Working Paper. Available at SSRN: https://ssrn.com/abstract=289348 or http://dx.doi.org/10.2139/ssrn.289348