We empirically measure the effects increasing competition on equilibrium bidding in procurement auctions. In common value auctions, the winner's curse counsels more conservative bidding as the number of competitors increases. First, we estimate the structural parameters of an equilibrium bidding...

We develop tests for the presence of common value components in bidders' valuations at symmetric first-price sealed bid auctions. These tests are fully nonparametric and require observations only of the bids submitted at each auction. The main principle of the test relies on the observation that...