TESTING FOR AFFILIATION IN FIRST‐PRICE AUCTIONS USING ENTRY BEHAVIOR*
证明潜在竞拍者的私人信息关联会导致进入决策关联,据此提出一个基于进入行为的关联性检验方法,并应用于俄勒冈州林业局木材销售数据,发现木材公司间存在微小但显著的关联性。
In this article, we show that affiliation among potential bidders' private information (either private signals or entry costs) leads to affiliation among their entry decisions. We propose a test for affiliation among potential bidders' private information based on the implication of affiliation on the entry behavior, which is general and widely applicable to various scenarios. The test is implemented using the simulation based method. We then apply our method to timber sales in the Oregon Department of Forestry and find a small but strongly significant level of affiliation among all timber companies.