The Vulnerability of Auctions to Bidder Collusion

S-Tier
Journal: Quarterly Journal of Economics
Year: 2009
Volume: 124
Issue: 2
Pages: 883-910

Authors (2)

Robert C. Marshall (not in RePEc) Leslie M. Marx

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Previous work has addressed the relative vulnerability of different auction schemes to collusive bidding. The common wisdom is that ascending-bid and second-price auctions are highly susceptible to collusion. We show that the details of ascending-bid and second-price auctions, including bidder registration procedures and procedures for information revelation during the auction, can be designed to completely inhibit, or unintentionally facilitate, certain types of collusion. If auctions are designed without acknowledging the possibility of collusion then the design will ignore key features that impact the potential success of colluding bidders.

Technical Details

RePEc Handle
repec:oup:qjecon:v:124:y:2009:i:2:p:883-910.
Journal Field
General
Author Count
2
Added to Database
2026-01-25