Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37020 
Authors: 
Year of Publication: 
2008
Series/Report no.: 
Bonn Econ Discussion Papers No. 20/2008
Publisher: 
University of Bonn, Bonn Graduate School of Economics (BGSE), Bonn
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 dominate (among bidders) the standard value-bidding equilibrium, without requiring the bidders to make any commitment on bidding behavior or post-bidding spoil-division.
Subjects: 
English auction
resale
collusion
JEL: 
D44
Document Type: 
Working Paper

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