The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Nov, 1994, Volume 62, Issue 6
https://doi.org/0012-9682(199411)62:6<1415:AFOAGL>2.0.CO;2-Y
p. 1415-1444
Charles A. Wilson, Kenneth Hendricks, Robert H. Porter
We analyze a first-price, sealed bid auction with a random reservation price to study the federal sales of offshore oil and gas leases on drainage tracts. Our model assumes the object to be sold has an unknown common value, but one buyer has better information than the others. We permit the reservation price to be correlated with the information of the informed buyer, which reflects both his assessment of the value of the object and the probability of rejection at any bid. Assuming all random variables are affiliated, we establish the following results. (i) The percentage rate of increase in the distribution of the uninformed bid is never greater than the percentage rate of increase of the distribution of the informed bid. (ii) The distributions are identical at bids above the support of the reservation price. (iii) The informed buyer is more likely to submit low bids. We demonstrate that bid data from the federal sales of offshore drainage leases satisfy these restrictions.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
