Collusion in Private Value Ascending Price Auctions

Katerina Sherstyuk

No 707, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: We investigate bidder collusion in one-sided ascending price auctions without communication. If bidding rules in an English-type auction allow bidders to match each others' bids, collusion can be sustained as a Nash equilibrium of a one-shot auction game. Our earlier experiments show that in common value auctions with complete information, collusion does occur and is sustainable even when bidders cannot explicitly coordinate their strategies. In this study, we investigate the robustness of bidders' collusive behaviour in private values, private information environments. We find that collusion still occurs as long as the bidders' gains from collusion are high.

Keywords: AUCTIONS; EXPERIMENTS; COLLUSION (search for similar items in EconPapers)
JEL-codes: C92 D44 (search for similar items in EconPapers)
Pages: 17 pages
Date: 1999
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Collusion in private value ascending price auctions (2002)
Working Paper: Collision in Private Value Ascending Price Auctions (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:707

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