Auctions and Corruption
AbstractIn many auctions, the auctioneer is an agent of the seller. This delegation invites corruption. In this paper we propose a model of corruption, examine how corruption affects the auction game, how the anticipation of corruption affects bidding, and how it altogether changes the revenue ranking of typical auctions. In addition we characterize incentive schemes that may prevent corruption, and compare them to the fee schedules employed by major auction houses.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 401.
Date of creation: 2000
Date of revision:
Auctions; procurement; corruption; collusion; coalitions;
Other versions of this item:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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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726, California Institute of Technology, Division of the Humanities and Social Sciences.
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"The Effect of Corruption on Bidding Behavior in First-Price Auctions,"
82, Universidad de San Andres, Departamento de Economia, revised Aug 2005.
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Papers on Strategic Interaction
2005-30, Max Planck Institute of Economics, Strategic Interaction Group.
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- Susanne Büchner & Andreas Freytag & Luis G. Gonzalez & Werner Güth, 2006. "Bribery and Public Procurement - An Experimental Study," Jenaer Schriften zur Wirtschaftswissenschaft 06/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
- Þevket Alper Koç, 2008. "Effects Of Asymmetry On Ex Ante Corruption At Auctions," Bogazici Journal of Economics and Administrative Sciences, Bogazici University, Department of Economics, vol. 22(1+2), pages 17-33.
- McAdams, David & Schwarz, Michael, 2007. "Who pays when auction rules are bent?," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1144-1157, October.
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