Shill bidding and optimal auctions.∗
نویسنده
چکیده
A single object is for sale to N asymmetric buyers in the independent private values setting by means of an English auction. We consider implications of seller’s active participation in the bidding process, or shill bidding. The main result is that there exists an equilibrium of the English auction with shill bidding that is outcome equivalent to the optimal mechanism of Myerson (1981). Thus, a detail-free mechanism that implements the optimal allocation and payment rules is
منابع مشابه
Shill Bidding in English Auctions
Shill bidding in English auction is the deliberate placing bids on the seller’s behalf to artificially drive up the price of his auctioned item. Shill bidding has been known to occur in auctions of high-value items like art and antiques where bidders’ valuations differ and the seller’s payoff from fraud is high. We prove that privatevalue English auctions with shill bidding can result in a high...
متن کاملCombating Shill Bidding in Real Time: Prevention, Detection and Response
Human cheating has been a barrier to establishing trust among e-commerce users, throughout the last two decades. In particular, in online auctions, since all the transactions occur among anonymous users, trust is difficult to establish and maintain. Shill bidding happens when bidders bid exclusively to inflate (in forward auctions) or deflate (in reverse auctions) prices in online auctions. At ...
متن کاملAn Adaptive Shill Bidding Agent
This paper presents a software bidding agent that inserts fake bids on the seller’s behalf to inflate an auction’s price. This behaviour is referred to as shill bidding. Shill bidding is strictly prohibited by online auctioneers, as it defrauds unsuspecting buyers by forcing them to pay more for the item. The malicious bidding agent was constructed to aid in developing shill detection technique...
متن کاملPrice comparison: A reliable approach to identifying shill bidding in online auctions?
1567-4223/$ see front matter 2011 Elsevier B.V. A doi:10.1016/j.elerap.2011.12.003 ⇑ Corresponding author. E-mail addresses: [email protected] (F. Dong), sh [email protected] (H. Xu), [email protected] (D. Majum Shill bidding has become a serious issue for innocent bidders with the growing popularity of online auctions. In this paper, we study the relationship between final prices of online auctions a...
متن کاملShill Bidding In Online English Auctions With A Random Number Of Bidders
Shill bidding has increased substantially with the explosion in the number of online auctions. For English auctions with conventional intermediation fee schedules and a continuous increment of the bid, sellers may profit from shill bidding, which is illegal. To deter shill bidding, Wang et al.31 designed a mechanism — the shill-deterrent fee schedule (SDFS) which makes shill bidding unprofitabl...
متن کامل