Traders' Bidding Strategies on European Grain Export Refunds: An Analysis with Affiliated Signals |
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| Authors: | Jean-Marc Bourgeon & Yves Le Roux |
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| Institution: | Department of Economics at the UniversitéParis X, Nanterre, France,;Institut National de la Recherche Agronomique (INRA), Department of Economics, Rennes, France |
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| 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. |
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| Keywords: | affiliated values auction theory EU exports generalized method of moments trade relations |
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