Bidder Collusion and the Auction with Target Bids
40 Pages Posted: 27 Aug 2014 Last revised: 13 Nov 2017
Date Written: August 1, 2014
This paper studies collusion in one-shot auctions, where a buyer can bribe his competitors into lowering their bids. We modify the single-unit Vickrey auction to incite deviations from the designated-winner scenario and thus undermine collusion. The construction of mechanism does not require the knowledge of colluders’ identities or distributions of valuations, in which sense it is entirely detail-free.
Keywords: Bidder collusion, detail-free auctions, Vickrey auction
JEL Classification: D82, C72, D44
Suggested Citation: Suggested Citation