Efficient Collusion in Repeated Auctions with Communication
This paper studies collusion in repeated auctions when bidders communicate prior to each stage auction. The paper presents a folk theorem for independent and correlated private signals and general interdependent values. Specifically, it identifies conditions under which an equilibrium collusion scheme is fully efficient in the sense that the bidders' payoff is close to what they get when the object is allocated to the highest valuation bidder at the reserve price in every period.
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"Bidder Collusion at Forest Service Timber Sales,"
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- Michihiro Kandori & Hitoshi Matsushima, 1997. "Private observation and Communication and Collusion," Levine's Working Paper Archive 1256, David K. Levine.
- Atkeson Andrew & Lucas Jr. , Robert E., 1995. "Efficiency and Equality in a Simple Model of Efficient Unemployment Insurance," Journal of Economic Theory, Elsevier, vol. 66(1), pages 64-88, June.
- Susan Athey & Kyle Bagwell, 1999.
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99-17, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aoyagi, Masaki, 1998. "Correlated Types and Bayesian Incentive Compatible Mechanisms with Budget Balance," Journal of Economic Theory, Elsevier, vol. 79(1), pages 142-151, March.
- Andrew Atkeson & Robert E Lucas, 2010.
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- Andrew Atkeson & Robert E. Lucas, 1992. "On Efficient Distribution With Private Information," Review of Economic Studies, Oxford University Press, vol. 59(3), pages 427-453.
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