Traders' bidding strategies on European grain export refunds: An analysis with affiliated signals

Using a multivariate distribution of traders' information with correlations , we specify the traders' bidding strategies on tenders of European soft wh eat intervention stocks. We show that correlations may have opposing effect s on the traders' bidding strategy, depending on their valuation of the gra in. This structural approach allows us to estimate the traders' strategies using generalized method of moments procedures.