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Forestry auctions with interdependent values: Evidence from timber auctions
- Tatoutchoup, Francis Didier
- Forest policy and economics 2017 v.80 pp. 107-115
- USDA Forest Service, auctions, forestry, forests, models, prices, United States
- This article exploits first-price sealed-bid auctions data from the U.S. Forest Service to find through a semi-parametric estimation evidence of interdependent values in the bidding behavior in the Forestry. Under this assumption, a theoretical model is developed for forest land auctions such that management of the forest is released to the winning firm. I characterize in the first-price auctions the optimal rotation as well as the reservation price. A calibration of the model is then proposed using the estimated parameters as well as the estimation of the underlying distribution of signals.