First-best collusion without communication
I study a 2-bidder infinitely repeated IPV first-price auction without transfers, communication, or public randomization, where each bidderʼs valuation can assume, in each of the (statistically independent) stage games, one of three possible values. Under certain distributional assumptions, the following holds: for every ϵ>0 there is a nondegenerate interval Δ(ϵ)⊂(0,1), such that if the biddersʼ discount factor belongs to Δ(ϵ), then there exists a Perfect Public Equilibrium with payoffs ϵ-close to the first-best payoffs.
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- First:Birgit Heydenreich & Rudolf Muller & Marc Uetz & Rakesh Vohra, 2007.
"Characterization of Revenue Equivalence,"
1448, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Müller Rudolf & Uetz Marc & Vohra Rakesh & Heydenreich Birgit, 2007. "Characterization of Revenue Equivalence," Research Memorandum 017, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
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Elsevier, vol. 131(1), pages 179-211, November.
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- Rachmilevitch, Shiran, 2013. "Endogenous bid rotation in repeated auctions," Journal of Economic Theory, Elsevier, vol. 148(4), pages 1714-1725.
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