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Optimal Bidding in the Mexican Treasury Securities Primary Auctions: Results of a Structural Econometric Approach

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  • Sara Castellanos
  • Marco Oviedo

Abstract

This analysis of the Mexican Treasury securities primary auctions suggests that the uniform format yields higher revenues than the discriminatory format. It applies the structural econometric model proposed by Février, Préget, and Visser (2004). This mod

Suggested Citation

  • Sara Castellanos & Marco Oviedo, 2008. "Optimal Bidding in the Mexican Treasury Securities Primary Auctions: Results of a Structural Econometric Approach," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 45(131), pages 3-28.
    • Handle: RePEc:ioe:cuadec:v:45:y:2008:i:131:p:3-28
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    File URL: http://www.economia.uc.cl/docs/131casta.pdf
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    References listed on IDEAS

    as
    1. Philippe Février & Raphaële Preget & Michael Visser, 2002. "Econometrics of Share Auctions," Working Papers 2002-09, Center for Research in Economics and Statistics.
    2. World Bank & International Monetory Fund, 2001. "Developing Government Bond Markets : A Handbook," World Bank Publications - Books, The World Bank Group, number 13865.
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    Cited by:

    1. Sanna Laksá & Daniel Marszalec & Alexander Teytelboym, 2018. "Epic Fail: How Below-Bid Pricing Backfires in Multiunit Auctions," CIRJE F-Series CIRJE-F-1096, CIRJE, Faculty of Economics, University of Tokyo.
    2. Marszalec, Daniel, 2017. "The impact of auction choice on revenue in treasury bill auctions – An empirical evaluation," International Journal of Industrial Organization, Elsevier, vol. 53(C), pages 215-239.
    3. Pycia, Marek & Woodward, Kyle, 2021. "Auctions of Homogeneous Goods: A Case for Pay-as-Bid," CEPR Discussion Papers 15656, C.E.P.R. Discussion Papers.
    4. Mariño, Eduardo Anthony G. & Marszalec, Daniel, 2023. "Strategic supply management and mechanism choice in government debt auctions: An empirical analysis from the Philippines," Journal of Banking & Finance, Elsevier, vol. 154(C).
    5. Burkett, Justin & Woodward, Kyle, 2020. "Uniform price auctions with a last accepted bid pricing rule," Journal of Economic Theory, Elsevier, vol. 185(C).

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    More about this item

    Keywords

    Treasury securities; share auction; Mexico;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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