Wednesday, December 14, 2011
Posted by D. Daniel Sokol
Shiran Rachmilevitch (Department of Economics, University of Haifa) explores Endogenous Bid Rotation in Repeated Auctions.
ABSTRACT: I study collusion between two bidders in a general symmetric IPV repeated auction, without communication, side transfers, or public randomization. I construct a collusive scheme, endogenous bid rotation, that generates a payoff larger than the bid rotation payoff.