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Empirical Testing of Auction Theory

Robert G. Hansen

American Economic Review 2016

Given the state of affairs in auction theory -there is at least one model, for instance, to support any position one would care to take concerning the revenue of sealed-bid vs. open auctions-it should not come as a surprise that a fair amount of empirical work in auctions is underway. This paper reports the results of some recently completed research. I first discuss papers in which the predictions being tested derive directly from the pure theory of auctions, and then papers in which the predictions arise out of an application of auction theory to a related institution.

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