2010): “What Model for Entry in First-Price Auctions? A Nonparametric Approach,” Working Paper

We develop a nonparametric approach that allows for discrimination among alter-native models of entry in first-price auctions. Three models of entry are considered: those of Levin and Smith (1994), Samuelson (1985), and a new model in which the information received at the entry stage is imperfectly correlated with bidder valuations. We derive testable restrictions of these models based on how the pro-competitive se-lection effect shifts bidder valuation quantiles in response to an increase in the number of potential bidders. JEL Classification: C12; C13; C1