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Bider Collusion at Forest Service Timber Sales

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Author Info

  • Marshall, R.C.
  • Richard J.F.

Abstract

Allegations of bidder collusion at Forest Service timber sales in the Pacific Northwest were common in the 1970s. Of course, prices may be low for reasons other than collusion. The authors formulate an empirical model that allows for both bidder collusion and supply effects and in which they control for demand conditions. Noncooperative behavior in which a single unit is sold (the standard auction model) is a special case: it is found to be definitively outperformed by a model of collusion. The authors also find that supply effects are dominated by collusion in determining the winning bids in the market. Copyright 1997 by the University of Chicago.

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Bibliographic Info

Paper provided by Pennsylvania State - Department of Economics in its series Papers with number 7-95-3.

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Length: 33 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:fth:pensta:7-95-3

Contact details of provider:
Postal: PENNSYLVANIA STATE UNIVERSITY, DEPARTMENT OF ECONOMICS, UNIVERSITY PARK PENNSYLVANIA 16802 U.S.A.
Phone: (814)865-1456
Fax: (814)863-4775
Web page: http://econ.la.psu.edu/
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Related research

Keywords: AUCTIONS; TIMBER;

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