Comparing competition and collusion: a numerical approach

B-Tier
Journal: Economic Theory
Year: 2001
Volume: 18
Issue: 1
Pages: 187-205

Authors (1)

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

Collusion is a serious problem in many procurement auctions. In this research, I study a model of first price sealed bid procurement auctions with asymmetric bidders. I demonstrate that the equilibrium to the model is unique and describe three algorithms that can be used to compute the inverse equilibrium bid functions. I then use the computational algorithms to compare competitive and collusive bidding. The algorithms are useful for structural estimation of auction models and for assessing the damages from bid-rigging.

Technical Details

RePEc Handle
repec:spr:joecth:v:18:y:2001:i:1:p:187-205
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24