Controlling collusion in auctions: The Role of ceilings and reserve prices
AbstractWe examine a simple model of collusion under a single-object secondprice 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 InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 07-02.
Length: 11 pages
Date of creation: Apr 2007
Date of revision:
Auctions; ceilings; collusion; reserve prices;
Other versions of this item:
- Chowdhury, Prabal Roy, 2008. "Controlling collusion in auctions: The role of ceilings and reserve prices," Economics Letters, Elsevier, vol. 98(3), pages 240-246, March.
- Roy Chowdhury, Prabal, 2006. "Controlling Collusion in Auctions: The Role of Ceilings and Reserve Prices," MPRA Paper 1503, University Library of Munich, Germany.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D4 - Microeconomics - - Market Structure and Pricing
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