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Traders' Bidding Strategies on European Grain Export Refunds: An Analysis with Affiliated Signals
Author(s) -
Bourgeon JeanMarc,
Roux Yves Le
Publication year - 2001
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/0002-9092.00178
Subject(s) - bidding , valuation (finance) , call for bids , business , intervention (counseling) , microeconomics , econometrics , industrial organization , procurement , economics , marketing , finance , psychology , psychiatry
Abstract Using a multivariate distribution of traders' information with correlations, we specify the traders' bidding strategies on tenders of European soft wheat intervention stocks. We show that correlations may have opposing effects on the traders' bidding strategy, depending on their valuation of the grain. This structural approach allows us to estimate the traders' strategies using generalized method of moments procedures.