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Maximal Loss from Collusion in the IPV Symmetric Auctions

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Listed:
  • Gregory Pavlov

    (Boston University, Department of Economics)

Abstract

We derive a bound on the seller’s relative revenue loss from an unanticipated bidders’ collusion in the optimal auctions. Under the standard hazard rate assumption the relative loss is at most 1 3 when there are just two bidders. The measure of the loss is increasing with the number of bidders, but at a rather slow rate.

Suggested Citation

  • Gregory Pavlov, 2006. "Maximal Loss from Collusion in the IPV Symmetric Auctions," Boston University - Department of Economics - Working Papers Series WP2006-037, Boston University - Department of Economics.
    • Handle: RePEc:bos:wpaper:wp2006-037
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    References listed on IDEAS

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    More about this item

    Keywords

    Collusion; Auctions;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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