A Multinomial Logit Framework to Estimate Bid Shading in Procurement Auctions: Application to Cattle Sales in the Texas Panhandle

摘要: We develop an empirical methodology based upon multinomial probability models to estimate the magnitude of bid shading in cattle procurement Texas Panhandle region. The works well settings where data allow a good estimation bidder’s winning, but approach does not rely bidding process following any particular structural framework or on existence control group. Estimated markdowns price from competitive level are range 5–10% and somewhat larger than estimates oligopsony previous studies U.S.