Equilibrium Bidding: Evidence from Land Auction in China

摘要

This paper employs symmetric private value auction first-price sealed bid model to analyze land auction in China. We apply the data from land auctions in Beijing. The available data includes the winning bid, the numbers of the bidders and their bids respectively. In order to estimate the bidder's valuation distribution more accurately, the nonparametric approach is adopted to estimate the equilibrium bidding of each auction. The results show the bidders really bid more aggressively in land auction market. At last, some suggestions are given for the auctioneer and the bidders.