D4 - Market Structure and Pricing

• Information Sharing and Bargaining in Buyer-Seller Networks

  Staff Working Paper 2016-63 Sofia Priazhkina, Frank H. Page

  This paper presents a model of strategic buyer-seller networks with information exchange between sellers. Prior to engaging in bargaining with buyers, sellers can share access to buyers for a negotiated transfer. We study how this information exchange affects overall market prices, volumes and welfare, given different initial market conditions and information sharing rules.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Firm dynamics, Market structure and pricing JEL Code(s): C, C7, C71, C78, D, D2, D21, D4, D43, D8, D85, L, L1, L13

• Identification and Estimation of Risk Aversion in First-Price Auctions with Unobserved Auction Heterogeneity

  Staff Working Paper 2016-23 Serafin Grundl, Yu Zhu

  This paper shows point identification in first-price auction models with risk aversion and unobserved auction heterogeneity by exploiting multiple bids from each auction and variation in the number of bidders. The required exclusion restriction is shown to be consistent with a large class of entry models.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods JEL Code(s): C, C1, C14, C5, C57, D, D4, D44, L, L0, L00