Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37020
Authors: 
Garratt, Rodney
Year of Publication: 
2008
Series/Report no.: 
Bonn econ discussion papers 2008,20
Abstract: 
The English auction is susceptible to tacit collusion when post-auction inter-bidder resale is allowed. We show this by constructing equilibria where, with positive probability, one bidder wins the auction without any competition and divides the spoils by optimally reselling the good to the other bidders. These equilibria interim Pareto dom inate (among bidders) the standard value-bidding equilibrium, without requiring the bidders to make any commitment on bidding behavior or post-bidding spoil-division.
Document Type: 
Working Paper

Files in This Item:
File
Size
480.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.