The Bidder Exclusion Effect

53 Pages Posted: 30 Sep 2014 Last revised: 29 Jan 2022

See all articles by Dominic Coey

Dominic Coey

eBay Research Labs

Bradley Larsen

Stanford University - Department of Economics; National Bureau of Economic Research (NBER); eBay Research Labs

Kane Sweeney

eBay Research Labs

Date Written: September 2014

Abstract

We introduce a simple and robust approach to answering two key questions in empirical auction analysis: discriminating between models of entry and quantifying the revenue gains from improving auction design. The approach builds on Bulow and Klemperer (1996), connecting their theoretical results to empirical work. It applies in a broad range of information settings and auction formats without requiring instruments or estimation of a complex structural model. We demonstrate the approach using US timber and used-car auction data.

Suggested Citation

Coey, Dominic and Larsen, Bradley and Sweeney, Kane, The Bidder Exclusion Effect (September 2014). NBER Working Paper No. w20523, Available at SSRN: https://ssrn.com/abstract=2502685

Dominic Coey (Contact Author)

eBay Research Labs ( email )

Bradley Larsen

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States

HOME PAGE: http://www.stanford.edu/~bjlarsen/research.html

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

eBay Research Labs ( email )

2065 Hamilton Avenue
San Jose, CA
United States

Kane Sweeney

eBay Research Labs ( email )

2065 Hamilton Avenue
San Jose, CA
United States

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