Bids as a Vehicle of (Mis)Information: Collusion in English Auctions with Affiliated Values

B-Tier
Journal: Journal of Economics & Management Strategy
Year: 2011
Volume: 20
Issue: 4
Pages: 1171-1196

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

In an English auction, a bidder’s strategy depends on the prices at which his competitors drop out, because these convey information on the value of the object on sale. A ring of colluding bidders can strategically manipulate the information transmitted through its members’ bids, in order to mislead other bidders into bidding less aggressively and thus allow a designated bidder to bid more aggressively. Collusion increases the probability that the ring wins the auction and reduces the price it pays. The presence of a ring harms other bidders (as well as the seller) and reduces efficiency.

Technical Details

RePEc Handle
repec:bla:jemstr:v:20:y:2011:i:4:p:1171-1196
Journal Field
Industrial Organization
Author Count
1
Added to Database
2026-01-28