Perfect bidder collusion through bribe and request

• Tác giả: Jingfeng Lu, Zongwei Lu, Christian Riis
• Ngôn ngữ: eng
• Ký hiệu phân loại: 795.414 Auction bridge
• Thông tin xuất bản: 2019
• Bộ sưu tập: Báo, Tạp chí
• ID: 163694

Tóm tắt

We study collusion in a second-price auction with two bidders in a dynamic environment. One bidder can make a take-it-or-leave-it collusion proposal, which consists of both an offer and a request of bribes, to the opponent. We show that there always exists a robust equilibrium in which the collusion success probability is one. In the equilibrium, for each type of initiator the expected payoff is generally higher than the counterpart in any robust equilibria of the single-option model (Es\"{o} and Schummer (2004)) and any other separating equilibria in our model.