Anonymity deters collusion in hard-close auctions: Experimental Evidence
AbstractThis paper studies whether collusion occurs in three-bidder three-object second-price hard-close auctions. The experimental results of two laboratory treatments are reported. The first one, the anonymity treatment,involves subject groups which can trace decisions to the bidder under conditions of anonymity. The second one, the friends treatment, involves groups of subjects who know each other. In this treatment each bid can be identified with a person. The paper reports no collusion in the anonymity treatment but some collusion in the friends treatment.
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Bibliographic InfoPaper provided by Luxembourg School of Finance, University of Luxembourg in its series LSF Research Working Paper Series with number 08-09.
Date of creation: 2008
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multi-unit auctions; collusion; experimental economics;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
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