proc_cost: Expected procurement cost with a price ceiling

In qdfauction: Nonparametric Quantile Density Estimation and Structural Analysis of First-Price Auctions

Expected procurement cost with a price ceiling

Description

C(r) = M - R'(M - r; M - v_0), where R' is the quantile-density revenue functional (fpa_revenue_qd) on the reflected fit. The plug-in fpa_revenue is not used: in procurement the unreliable tail of the inversion is the winners' tail.

Usage

proc_cost(pv, r = Inf, v0, ...)

Arguments

pv	A proc_values object fitted to a bid matrix.
r	Price ceiling(s) on the bid scale; Inf for no ceiling.
v0	Buyer's cost if no bid is accepted (outside option).
...	Passed to fpa_revenue_qd.

Value

Numeric vector of expected costs, one per element of r.

qdfauction documentation built on Nov. 10, 2026, 5:07 p.m.