Controlling collusion in auctions: The role of ceilings and reserve prices
AbstractWe examine a simple model of collusion under a single-object second-price auction. Under the appropriate parameter conditions, in particular as long as collusion is neither too easy, nor too difficult, we find that the optimal policy involves both an effective ceiling, as well as a reserve price set at the lowest bidder valuation.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 98 (2008)
Issue (Month): 3 (March)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Roy Chowdhury, Prabal, 2006. "Controlling Collusion in Auctions: The Role of Ceilings and Reserve Prices," MPRA Paper 1503, University Library of Munich, Germany.
- Prabal Roy Chowdhury, 2007. "Controlling collusion in auctions: The Role of ceilings and reserve prices," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 07-02, Indian Statistical Institute, New Delhi, India.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D4 - Microeconomics - - Market Structure and Pricing
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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