@techreport{Lengwiler2005rigging,
abstract = {In many auctions, the auctioneer is an agent of the seller. This invites corruption. We propose
a model of corruption in which the auctioneer orchestrates bid rigging by inviting a bidder to
either lower or raise his bid, whichever is more profitable. We characterize equilibrium
bidding in first- and second-price auctions, show how corruption distorts the allocation, and
why both the auctioneer and bidders may have a vested interest in maintaining corruption. Bid
rigging is initiated by the auctioneer after bids have been submitted in order to minimize
illegal contact and to realize the maximum gain from corruption.},
author = {Yvan Lengwiler and Elmar Wolfstetter},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D44; 330; auctions; procurement; corruption; right of first refusal; numerical methods; Auktionstheorie; Korruption; Theorie},
language = {eng},
number = {1488},
title = {Bid rigging : an analysis of corruption in auctions},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18952},
year = {2005}
}
