Bidding theory predicts low er selling winning bids (higher buying winning bids) as numbers of bidders incre ase. Alternative versions predict that winning bids fall (rise) with the second order statistic, the maximum order statistic, or 1/N. The authors test these pre dictions using data on underwriters' spreads on tax exempt bonds, offshore oil t racts, and National Forest timber. They estimate winning bids using general vari ables for the product and dummies for 1, 2, . . .11 bidders. In all cases mor e bidders meansignificantly lower (selling) winning bids. The expected maximum order statistic fits better than either the second order statistic or1/N, in te n out of twelve cases.

Solomon W. Polachek, Bong Joon Yoon, A Two-Tiered Earnings Frontier Estimation of Employer and Employee Information in the Labor Market, The Review of Economics and Statistics, Vol. 69, No. 2 (May, 1987), pp. 296-302

Douglas W. Caves, Joseph A. Herriges, Kenneth E. Train, Robert J. Windle, A Bayesian Approach to Combining Conditional Demand and Engineering Models of Electricity Usage, The Review of Economics and Statistics, Vol. 69, No. 3 (Aug., 1987), pp. 438-448

Arnold Zellner and Franz Palm (1974) show that comparing the actual with the implied stochastic process es generating the endogenous variables in a system of dynamic structu ral equations provides important information about the system's corre ct specification. The authors apply their methodology to structural e xchange-rate models. They find that the log of the bilateral exchange rate is generally well approximated by a random-walk model. Thus, th e stochastic processes generating the exogenous variables should also be random-walk models, which in not borne out by our empirical resul ts. They suggest a reconciliation of their results based on a decompo sition technique developed by Stephen Beveridge and Charles R. Nelson (1981).

W. Kip Viscusi, Michael J. Moore, Workers' Compensation: Wage Effects, Benefit Inadequacies, and the Value of Health Losses, The Review of Economics and Statistics, Vol. 69, No. 2 (May, 1987), pp. 249-261

Solomon W. Polachek, Phanindra V. Wunnava, Michael T. Hutchins, Panel Estimates of Union Effects on Wages and Wage Growth, The Review of Economics and Statistics, Vol. 69, No. 3 (Aug., 1987), pp. 527-531

Varouj A. Aivazian, Jeffrey L. Callen, M. W. Luke Chan, Dean C. Mountain, Economies of Scale Versus Technological Change in the Natural Gas Transmission Industry, The Review of Economics and Statistics, Vol. 69, No. 3 (Aug., 1987), pp. 556-561