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 Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes in its series SFB 373 Discussion Papers with number 2000,40.
Date of creation: 2000
Date of revision:
auctions; procurement; corruption; collusion; coalitions;
Other versions of this item:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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