Controlling collusion in auctions: The role of ceilings and reserve prices
We examine a simple model of collusion under a single-object second-price 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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References listed on IDEAS
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- Peter Eso & James Schummer, 2002.
"Bribing and Signalling in Second Price Auctions,"
1357, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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- Kirkegaard, Rene, 2005. "Participation fees vs. reserve prices in auctions with asymmetric or colluding buyers," Economics Letters, Elsevier, vol. 89(3), pages 328-332, December.
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- Arieh Gavious & Benny Moldovanu & Aner Sela, 2002.
"Bid Costs and Endogenous Bid Caps,"
RAND Journal of Economics,
The RAND Corporation, vol. 33(4), pages 709-722, Winter.
- Graham, Daniel A & Marshall, Robert C, 1987. "Collusive Bidder Behavior at Single-Object Second-Price and English Auctions," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1217-39, December.
- repec:cup:cbooks:9780521536721 is not listed on IDEAS
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