IDEAS home Printed from
   My bibliography  Save this article

Competition in Bidding Markets


  • OECD


The OECD Competition Committee debated competition in bidding markets in October 2006. Competition authorities become interested in auctions by a number of routes. In competition advocacy, they may advise other parts of government on how to design auctions in order to improve their efficiency—the degree of competition. They may evaluate mergers and agreements between firms that operate in auction markets. And they may be concerned with collusion and abuse of a dominant position in auctions. Because their formal rules reduce “noise” and make communication among rivals easier, auctions can promote collusion, compared with ordinary “posted-price” markets. But an auction can be designed to reduce collusion or concerted practices or to promote participation. Thus, the design of an auction can be the object of lobbying pressure. Auctioneers can also behave strategically, choosing auction formats or practices that favour competition. Two fundamental prescriptions for effective auction design follow from the theoretical literature: Induce bidders to truthfully reveal their valuations by making what they pay not depend entirely on what they bid, and maximize the information available to each participant before he bids.

Suggested Citation

  • Oecd, 2010. "Competition in Bidding Markets," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 10(1), pages 69-151.
  • Handle: RePEc:oec:dafkaa:5kmhbhp8sgs6

    Download full text from publisher

    File URL:
    Download Restriction: Full text available to READ online. PDF download available to OECD iLibrary subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Gheorghe MINCULETE & Maria-Ana CHISEGA-NEGRILÃ, 2014. "Marketing Management Relational Approaches Focused on Consumer’s and Customer’s Needs and Desires," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 17(2), pages 325-346, December.
    2. OGREAN Claudia, 2015. "Business Models To Meet The Challenges Of The Global Economy. A Literature Review," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(6), pages 127-146, December.
    3. Höglinger, Christoph & Sinozic, Tanja & Tödtling, Franz, 2012. "Emergence, growth and transformation in local clusters - Environmental industries in the region of Upper Austria," SRE-Discussion Papers 3680, WU Vienna University of Economics and Business.
    4. Robert Goedegebuure & Kennedy Ssejjemba & André de Waal, 2013. "Key determinants of effective partnerships: The case of partnerships between lead firms and farmers in pineapple value chains in Uganda and Kenya," Working Papers 2013/27, Maastricht School of Management.
    5. Franz Tödtling & Alexander Auer & Tanja Sinozic, 2014. "Driving factors for cluster development - Which kind of spatial rootedness and change?," SRE-Disc sre-disc-2014_06, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    6. Iversen, Evald Bundgaard & Cuskelly, Graham, 2015. "Effects of different policy approaches on sport facility utilisation strategies," Sport Management Review, Elsevier, vol. 18(4), pages 529-541.
    7. Lang, Gunnar & Schäfer, Henry, 2013. "What is the wind behind the sails to go abroad? Empirical evidence from the mutual fund industry," ZEW Discussion Papers 13-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    8. Stepan Zemtsov & Vera Barinova & Alexey Pankratov & Evgeniy Kutsenko, 2016. "Potential High-Tech Сlusters in Russian Regions: From Current Policy to New Growth Areas," Foresight-Russia Форсайт, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 10(3 (eng)), pages 34-52.
    9. Thompson, Ian & Pech, Richard & Oh, Kok Boon & Marjoribanks, Timothy, 2016. "An assessment of delivery changes for UK terminal air navigation services," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 155-167.
    10. repec:hur:ijaraf:v:7:y:2017:i:3:p:58-69 is not listed on IDEAS
    11. repec:pra:mprapa:67187 is not listed on IDEAS
    12. Anton, Roman, 2014. "Sustainable Intrapreneurship - The GSI Concept and Strategy - Unfolding Competitive Advantage via Fair Entrepreneurship," MPRA Paper 69713, University Library of Munich, Germany, revised 01 Feb 2015.
    13. Anton, Roman, 2015. "Monetary Development and Transmission in the Eurosystem," MPRA Paper 67323, University Library of Munich, Germany, revised 08 Oct 2015.
    14. Elena VESELINOVA & Marija GOGOVA SAMONIKOV, 2013. "How the Textile Companies in South-East Europe Create Value: The Case of the Republic of Macedonia," Management Dynamics in the Knowledge Economy Journal, College of Management, National University of Political Studies and Public Administration, vol. 1(2), pages 327-342, August.
    15. Vasile Deac, 2012. "Strategic Management In A Crisis Context," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 6(1), pages 102-109, November.
    16. Vasile DEAC & Mihai VRÎNCUÞ, 2013. "Price Management Paradoxes In The Romanian Economic Crisis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 48-55, November.
    17. Vasile DEAC & Florin Alexandru DUNÃ, 2012. "Diagnosis Of The Internal Strategic Context Of The Company Strategic Analysis," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 2(2), pages 25-34, June.
    18. Clements, Paul & McGregor, John, 2012. "Better, faster, cheaper: Pick any three," Business Horizons, Elsevier, vol. 55(2), pages 201-208.
    19. Manuela Jr., Wilfred S. & Rhoades, Dawna L. & Curtis, Tamilla, 2016. "An analysis of Delta Air Lines' oil refinery acquisition," Research in Transportation Economics, Elsevier, vol. 56(C), pages 50-63.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:dafkaa:5kmhbhp8sgs6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.