DECIDING BETWEEN THE COMMON AND PRIVATE VALUE PARADIGMS IN EMPIRICAL-MODELS OF AUCTIONS

Within both the common and private value paradigms, I consider two simple theoretical models of rational bidding at sealed-bid auctions. Each model is mapped into an empirical specification. I then apply this empirical framework to data from a sample of tree planting contract auctions held in the province of British Columbia, Canada, in an attempt to decide between the two competing paradigms.