Collusion in private value ascending price auctions
نویسنده
چکیده
We investigate the effects of bid improvement rules and bidder value asymmetry on bidder collusion in experimental ascending price auctions without communication. We find that the strict bid improvement rule and private values are not always sufficient to break collusion among well-motivated bidders. Collusion still occurs as long as bidder gains from collusion are high. JEL classification code: C92, D44
منابع مشابه
Division of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 Collision in Private Value Ascending Price Auctions
We investigate bidder collusion in one-sided ascending price auctions without communication. If bidding rules in an English-type auction allow bidders to match each others' bids, collusion can be sustained as a Nash equilibrium of a one-shot auction game. Our earlier experiments show that in common value auctions with complete information, collusion does occur and is sustainable even when bidde...
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