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Controlling collusion in auctions: The role of ceilings and reserve prices

✍ Scribed by Prabal Roy Chowdhury

Book ID
116421759
Publisher
Elsevier Science
Year
2008
Tongue
English
Weight
142 KB
Volume
98
Category
Article
ISSN
0165-1765

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This paper analyzes the entry decision of rational bidders who expect to experience auction fever in English auctions. It shows that nonparticipation decision reduces seller's expected profit and this effect may outweigh the positive effect of the auction fever. We analyze the choice between English