Nuremberg Research Seminar in Economics on 23 November 2022 – Zoom – Start: 16:45
You are invited to join the weekly Nuremberg Research Seminar in Economics on 23 November 2022 at 16:45 pm. The seminar will be held via Zoom. Mario Samano (HEC Montréal) will be talking about „Bidders’ Experience and Prices in Renewable Energy Auctions”.
More information can be found here:
This paper studies the role of auction design and experience of bidders on equilibrium outcomes. We make use of unique bid-level data from the Germany renewable energy auctions (2015-2019) and document bidding behavior of new entrants and incumbents over time as well as recover valuations of bidders by estimating a structural model of multi-unit auctions. Reduced-form evidence shows that the level of experience matters for the magnitude of the bid offers and that being a new auction participant increases the size of the bid offered and therefore, decreases the probability of winning. These behaviors change depending on whether we study the period when average bidding prices fall or when they have stagnated suggesting the existence of different rest points over time. We estimate the structural model for these two periods and perform counterfactual analysis regarding the implementation of uniform auctions.