Why do bidders drop out from a sequential auction

In actual sequential auctions, 1) bidders typically incur a cost in continuing from one sale to the next, and 2) bidders decide whether or not to continue. To investigate the question "why do bidders drop out," we define a sequential auction model with continuation costs and an endogenously determined number of bidders at each sale, and we characterize the equilibria in this model. Simple examples illustrate the effect of several possible changes to this model.

Optimal auction with a general distribution: virtual valuation without densities

We characterize the optimal auction in an independent private values framework for a completely general distribution of valuations. We do this introducing a new concept: the generalized virtual valuation. To show the wider applicability of this concept we present two examples showing how to extend the classical models of Mussa and Rosen and Baron and Myerson for arbitrary distributions

The effects of commodity dependence on the brazilian economy: a test of the dutch disease hypothesis

A doença holandesa tornou-se amplamente conhecida na década de 1960, quando a descoberta repentina de reservatórios de gás natural em território holandês, na região do mar do norte, transformou o país em uma economia rica em recursos. A desagradável consequência que proveio da recém-adquirida abundância de commodities foi o declínio da próspera indústria holandesa, que perdeu sua competitividade devido à valorização do florim holandês, como consequência do aumento do influxo de capital estrangeiro no país. Desde então este fenômeno tem sido observado em diversos países que possuem abundância de commodities. O objetivo desta tese é aplicar o modelo da doença holandesa ao Brasil, já que a maior economia da América latina poderá também ter de encarar a ameaça de se tornar prisioneira da “armadilha das commodities”, devido à sua abundância de recursos naturais. O autor revisa a bibliografia básica abordando o tema geral da doença holandesa e dá enfoque a estudos realizados anteriormente no Brasil. Além disso, os quatro maiores sintomas que caracterizam a doença holandesa são testados: (1) valorização das taxas de câmbio do real, (2) declínio do setor industrial, (3) crescimento do setor de serviços, e (4) aumento dos salários. Todos estes sintomas foram observados e podem ser comprovados através das abordagens de cointegração ou de correlação, com exceção do sintoma número dois. Ainda que estes resultados sejam significativos, há muito outros fatores determinantes que influenciam o desenvolvimento dos sintomas examinados, motivo pelo qual futuros estudos serão necessários para se obtiver conclusões definitivas sobre como o Brasil é afetado pela doença holandesa.

Auctions with options for re-auction

We examine the role of seller bidding and reserve prices in an infinitely repeated independent-private-value (IPV) ascending-price auction. The seller has a single object that she values at zero. At the end of any auction round, she may either sell to the highest bidder or pass-in the object and hold a new auction next period. New bidders are drawn randomly in each round. The ability to re-auction motivates a notion of reserve price as the option value of retaining the object for re-auctioning. Even in the absence of a mechanism with which to commit to a reserve price, the optimal “secret” reserve is shown to exceed zero. However, despite the infinite repetition, there may be significant value to the seller from a binding reserve price commitment: the optimal binding reserve is higher than the optimal “secret” reserve, and may be substantially so, even with very patient players. Furthermore, reserve price commitments may even be socially preferable at high discount factors. We also show that the optimal “phantom” bidding strategy for the seller is revenue-equivalent to a commitment to an optimal public reserve price.

Auction econometrics by least squares

This paper proposes a method to structurally estimate an auction model using a variation of OLS, under commonly held assumptions in both auction theory and econometrics. In spite of its computational simplicity, the method applies to a wide variety of environments, including interdependent values in general, and certain forms of endogenous participation and bidder asymmetry. Furthermore, it can be used for hypotheses testing about the shape of the valuation distribution, valuation interdependence, or existence of bidder asymmetry.

Mid-auction information acquisition

This paper studies a model of a sequential auction where bidders are allowed to acquire further information about their valuations of the object in the middle of the auction. It is shown that, in any equilibrium where the distribution of the final price is atornless, a bidder's best response has a simple characterization. In particular, the optimal information acquisition point is the same, regardless of the other bidders' actions. This makes it natural to focus on symmetric, undominated equilibria, as in the Vickrey auction. An existence theorem for such a class of equilibria is presented. The paper also presents some results and numerical simulations that compare this sequential auction with the one-shot auction. 8equential auctions typically yield more expected revenue for the seller than their one-shot counterparts. 80 the possibility of mid-auction information acquisition can provide an explanation for why sequential procedures are more often adopted.

How to neutralize the adverse developmental effects of the Dutch disease?

This paper addresses the subject of the adverse developmental effects of the Dutch disease: the theory, the experience of Latin America over the last decade, and the economic policy management issues on what to do about it.

Suriname-Dutch relationship within the framework of policymaking and planning

Publicado también con el símbolo CEPAL/CARIB 80/7

Review of CARIFORUM-EU EPA - Implicatons for the British and Dutch Caribbean OCT's

The European Commission (EC) recently tabled a Green Paper on the future relations between the European Union (EU) and the Overseas Countries and Territories (OCTs). The document is intended to spark a broad public debate on the opportunity of replacing the current Overseas Association Decision (OAD) of 2001 with an “innovative partnership” for the territories when the present agreement expires on 31 December 2013. The Commission will hold an online consultation covering the issue from 1 July to 17 October 2008. This remains without prejudice to a possible revision of the OAD before the end of 2011, in accordance with its article 62. The need for the launch of the debate arose out of the recognition that the current OCT-EU association is based on an outdated development cooperation logic, whereas the OCTs potential and the challenges they are facing would require an approach that focuses on the strengthening of their competitiveness, the facilitation of regional integration and the reduction of the impact of the factors that contribute to their vulnerability.

Quantitative motor unit action potential analysis in 2 paraspinal neck muscles in adult Royal Dutch Sport horses

BACKGROUND: Reference values for quantitative electromyography (QEMG) in neck muscles of Royal Dutch Sport horses are lacking. OBJECTIVE: Determine normative data on quantitative motor unit action potential (QMUP) analysis of serratus ventralis cervicis (SV) and brachiocephalicus (BC) muscle. ANIMALS: Seven adult normal horses (mean age 9.5 standard deviation [SD] +/- 2.3 years, mean height 1.64 SD +/- 4.5 cm, and mean rectal temperature 37.6 SD +/- 0.3 degrees C). METHODS: An observational study on QMUP analysis in 6 segments of each muscle was performed with commercial electromyography equipment. Measurements were made according to formerly published methods. Natural logarithm transformed data were tested with ANOVA and posthoc testing according to Bonferroni. RESULTS: Mean duration, amplitude, phases, turns, area, and size index (SI) did not differ significantly among the 6 segments in each muscle. Mean amplitude, number of phases, and SI were significantly (P < .002) higher in SV than BC, 520 versus 448 muV, 3.0 versus 2.8 muV, and 0.48 versus 0.30 muV, respectively. In SV 95% confidence intervals (CI) for amplitude, duration, number of phases, turns, polyphasia area, and SI were 488-551 muV, 4.3-4.6 ms, 2.9-3.0, 2.4-2.6, 7-12%, 382-448, and 0.26-0.70, respectively; in BC this was 412-483 muV, 4.3-4.7 ms, 2.7-2.8, 2.4-2.6, 4-7%, 393-469, and 0.27-0.34, respectively. Maximal voluntary activity expressed by turns/second did not differ significantly between SV and BC with a 95% CI of 132-173 and 137-198, respectively. CONCLUSIONS AND CLINICAL IMPORTANCE: The establishment of normative data makes objective QEMG of paraspinal muscles in horses suspected of cervical neurogenic disorders possible. Differences between muscles should be taken into account.