Conservation Auctions, Collusion and the Endowment Effect

Sniping to Avoid the Endowment Effect in Auctions

An endowment effect can result in both multiple bidding and sniping in auctions. It can cause players to bid multiple times and overpay for items. Sniping is a rational response for experienced bidders looking to avoid the endowment effect. JEL: D44, D83

Optimal collusion-proof auctions

We study an optimal collusion-proof auction in an environment where subsets of bidders may collude not just on their bids but also on their participation. Despite their ability to collude on participation, informational asymmetry facing the potential colluders can be exploited significantly to weaken their collusive power. The second-best auction — i.e., the optimal auction in a collusion-free ...

The Effect of Collusion on Efficiency in Experimental Auctions

This paper examines the effect of collusion on allocative efficiency in a second-price sealed-bid auction, in which bidders’ valuations have private and common value components. We present a theoretical model which shows that explicit collusion improves average efficiency. Furthermore, a reduction in common value signal variance increases the efficiency of allocations when a cartel is present. ...

Auctions as Collusion Devices

The Economics of Auctions and Bidder Collusion

This is a revised version of “The Economics of Auctions and Bidder Collusion, in Game Theory and Business Applications (Kalyan Chatterjee & William F. Samuelson eds., 2001). The content draws signi…cantly from two earlier papers by authors Marshall and Meurer: “Bidder Collusion: A Basic Analysis of Some Fundamental Issues,”and “Should Bid-Rigging Always be an Antitrust Violation?”We thank Vikra...