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Identification and Estimation of a Search Model: A Procurement Auction Approach

  • Date 2017-10-24 (Tue)
  • Time 02:30 PM
  • Venue Conference Room B110
  • Presider Professor Le-Yu Chen
  • Speaker Professor Sorawoot (Tang) Srisuma
  • Background Professor Srisuma received his Ph.D. in Economics from London School of Economics in 2010. He is currently a Reader in Econometrics at University of Surrey. His research fields are Econometrics, and Empirical Industrial Organization.
  • Abstract We propose a non-sequential search model with a continuum of consumers and a finite number of firms. Both consumers and firms are heterogeneous. Consumers differ in search costs. Firms have private marginal costs of production. We show that an equilibrium price dispersion can arise in this model as firms employ a Bayesian Nash pricing strategy. We provide conditions to identify the model using price and another supply side data (such as market share). Our identification strategy is constructive. We derive the uniform rate of convergence of our estimator.