Non-Uniform Bids in Bidding Rings
6 Pages Posted: 16 Aug 2004
Date Written: July 2004
Abstract
This paper shows that the bid rotation scheme in McAfee and McMillan (1992) is no longer optimal when negative externalities are involved among the bidders. The optimal collusive bidding scheme in such case involves partial sorting.
Keywords: Auctions
JEL Classification: D44
Suggested Citation: Suggested Citation
Rhee, Ki-Eun, Non-Uniform Bids in Bidding Rings (July 2004). Available at SSRN: https://ssrn.com/abstract=576782 or http://dx.doi.org/10.2139/ssrn.576782
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