Auction prices, market share, and a common agent

Coatney, Kalyn T.; Shaffer, Sherrill; Menkhaus, Dale J.

doi:10.1016/j.jebo.2011.09.011

Cited by 11 publications

(8 citation statements)

References 36 publications

(53 reference statements)

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“…Based on the bids actually submitted in the Buenos Aires auction, the definitive solution awarded all of the schools to the same bidder (Firm A) at a unit price of U$S 234.84 per month. This is consistent with previous literature that predicts the strongest bidder is always the winner (Maskin and Riley 2000;Coatney et al 2012).…”

Section: Discussionsupporting

confidence: 93%

An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools

et al. 2016

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This article studies a multi-item auction characterized by asymmetric bidders and quantity discounts. We report a practical application of this type of auction in the procurement of Internet services to the 709 public schools of Buenos Aires. The asymmetry in this application is due to firms' existing technology infrastructures, which affect their ability to provide the service in certain areas of the city. A single round first-price sealed-bid auction, it required each participating firm to bid a supply curve specifying a price on predetermined graduated quantity intervals and to identify the individual schools it would supply. The maximal intersections of the sets of schools each participant has bid on define regions we call competition units. A single unit price must be quoted for all schools supplied within the same quantity interval, so that firms cannot bid a high price where competition is weak and a lower one where it is strong. Quantity discounts are allowed so that the bids can reflect returns-to-scale of the suppliers and the auctioneer may benefit of awarding bundles of units instead of separate units. The winner determination problem in this auction poses a challenge to the auctioneer. We present an exponential formulation and a polynomial formulation for this problem, both based on integer linear programming. The polynomial formulation proves to find the optimal set of bids in a matter of seconds. Results of the real-world implementation are reported. B G. Durán

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Section: Discussionsupporting

confidence: 93%

An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools

et al. 2016

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“…However, if historical age and growth information can be used to improve the profitability of the feeder, then by extension, the feeder would be willing to pay for such information. For instance, live cattle auctions can be described as a common value auction (Coatney et al, 2012). It is a well-established principal in the common value auction literature that bids (price) increase as the noise of the true value's signal is reduced, hence mitigating the winner's curse (Krishna, 2002).…”

Section: Discussionmentioning

confidence: 99%

Comparing Carcass End-Point and Profit Maximization Decision Rules Using Dynamic Nonlinear Growth Functions

Maples

Coatney

Riley

et al. 2015

J. Agric. Appl. Econ.

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Abstract. This article develops a market timing decision rule for cattle feeders based on profit maximization. We then compare it with the "status quo" strategy of feeding cattle to a targeted carcass end point. We estimate individual nonlinear dynamic growth functions to derive each animal's value of the marginal product in relation to days on feed. Given individual marginal factor costs, our results indicate that the use of a profit maximization rule could have increased average profits by $16.56 to $21.09 per head for the cattle of known age, and $7.67 to $11.32 per head if age was unknown.

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“…Parcell, Schroeder, and Hiner (1995) found a positive relationship between price and dressing percentage but did not control for body weight. Coatney, Shaffer, and Menkhaus (2012) found a positive relationship between body weight and price for slaughter cows. As such, the BF's expected salvage value is expected to increase with increasing body weight.…”

Section: Body Weightmentioning

confidence: 93%

“…where the subset of observable characteristics to the buyer impacting salvage value is ω i K i , as well as their corresponding expected implicit marginal values ν paid by slaughter cow buyers. Examples of important salvage value characteristics are health, weight, and breed type that impact expected dressing percentage and subsequent red meat yield (Mintert et al, 1990;Coatney, Shaffer, and Menkhaus, 2012). In all, the buyers' perceived total marginal value product of any characteristic's contribution to the NPV is a complicated relationship of various characteristic combinations, some of which may simultaneously impact the buyers' expected returns, production costs, and salvage value.…”

Section: Conceptual Asset Value Modelmentioning

confidence: 99%

“…Resolving the asset pricing model presented in equation 3in Ladd and Martin's multi-product profit maximization framework, though beyond the scope of this analysis, may provide an alternative empirical specification of equation 4. possible impacts of omitted variables (e.g., bidding competition per animal), autocorrelation is also of concern within single auction location analyses (Parcell, Schroeder, and Hiner, 1995;Coatney, Shaffer, and Menkhaus, 2012;Schulz, Dhuyvetter, and Doran, 2015). 11 Finally, the large number of variables included in the model, some of which are physically interrelated to some degree (i.e., body weight, frame size, muscling, and body condition (Coatney, Menkhaus, and Schmitz, 1996)), also raise concerns of multicollinearity.…”

Section: Empirical Modeling and Estimationmentioning

confidence: 99%

See 1 more Smart Citation

Factors Impacting Reproductive Success and Asset Value of Beef Breeding Females in Mississippi Auctions

Marshall

Coatney

Parish

et al. 2021

J. Agric. Appl. Econ.

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A breeding female’s perceived value is a complicated process and depends on a combination of expected production costs, reproductive success, and calf values. A conceptual asset value model based on female characteristics as signals and net implicit marginal value expectations is developed. A hedonic model based on sequentially sold individuals at multiple Mississippi auction locations is estimated by panel regression. Among other findings, pregnant females are discounted in proportion to abortion risk, which decreases toward birth. A follow-up cost/benefit analysis indicates producers are better off from at home pregnancy checking and selling only nonpregnant females or cow/calf pairs.

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Auction prices, market share, and a common agent

Cited by 11 publications

References 36 publications

An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools

An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools

Comparing Carcass End-Point and Profit Maximization Decision Rules Using Dynamic Nonlinear Growth Functions

Factors Impacting Reproductive Success and Asset Value of Beef Breeding Females in Mississippi Auctions

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