Misbehavior in Common Value Auctions: Bidding Rings and Shills

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2023
Volume: 15
Issue: 1
Pages: 171-200

Authors (2)

Dan Levin (not in RePEc) James Peck (Ohio State University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We characterize the optimal misbehavior by bidding rings or an auctioneer in the ascending English auction with common values. We also show, in an extended game, that in equilibrium potential members join and truthfully reveal their signals. Under a separability assumption, behavior does not change if nonring bidders are informed about the ring's existence. In general, misbehavior in dynamic settings is more profitable than in outcome-equivalent static settings. However, under a stronger separability assumption, the ring can do no better in the dynamic English format than in the outcome-equivalent, static Sophi format.

Technical Details

RePEc Handle
repec:aea:aejmic:v:15:y:2023:i:1:p:171-200
Journal Field
General
Author Count
2
Added to Database
2026-01-29