Collusion or Sniping in simultaneous ascending Auctions

  • Sascha Füllbrunn
Schlagworte: collusion, sniping, multi unit auctions, prisoner's dilemma, JEL: D44

Abstract

In simultaneous ascending price auctions with heterogeneous goods Brusco and Lopomo (2002) derive collusive equilibria where bidders divide objects among themselves, while keeping the prices low. Considering a simultaneous ascending price auction with a fixed deadline, i.e. the Hard Close auction format, a prisoner's dilemma situation results and collusive equilibria no longer exists, even for only two bidders. Hence, we introduce a further reason for sniping behavior in Hard Close auctions.

Veröffentlicht
2018-09-03
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