Integrating the Structural Auction Approach and Traditional Measures of Market Power

Parameter

Estimate

Standard

error

t-value

Pr > |t|

intercept

-10.80

825

-131

0.2086

cattle inventory (shwlst)

-0.01

0.07

-0.08

0.9343

total demand (todem)

0.13

0.12

1.04

0.3129

cattle from Feedlot 1 (fdlt1)

0.17

0.19

0.87

0.3979

cattle from Feedlot 2 (fdlt2)

-0.06

0.20

-0.32

0.7522

cattle from Feedlot 3 (fdlt3)

-0.59

0.19

-3.05

0.0076

cattle from Feedlot 4 (fdlt4)

0.24

0.19

1.22

0.2401

cattle from Feedlot 5 (fdlt5)

-0.83

0.20

-4.22

0.0006

cattle from Feedlot 6 (fdlt6)

-0.41

0.20

-2.05

0.0575

cattle from Feedlot 7 (fdlt7)

0.44

0.21

2.1

0.0515

medium generic carcass (GenM)

1.25

0.12

10.82

< 0.0001

high generic carcass (GenH)

3.03

0.13

22.7

< 0.0001

cattle sold at 1500 lbs. (wt150)

1.07

0.19

5.74

< 0.0001

cattle sold at 1500 lbs. (wt175)

3.92

0.31

12.62

< 0.0001

Herfindahl index (HHI)

11.95

6.04

1.98

0.0654

indicator for bidder 1 (bidder1)

0.47

0.44

1.06

0.3053

indicator for bidder 2 (bidder2)

0.38

0.22

1.78

0.0947

indicator for bidder 3 (bidder3)

0.28

0.15

1.86

0.0811

intercept of the variance equation

0.44

0.87

0.51

0.619

slope of inventory in the variance

-0.02

0.01

-2.55

0.0215

equation

slope of total demand in the variance

0.05

0.01

3.32

0.0043

equation

variance of time random effect

4.38

1.52

2.88

0.011

-2 log-likelihood

1916.6