Abstract

Clustering of the two most competitive bids in first-price auctions can be indicative of collusive behavior. However, it can also reflect non-cooperative strategies under complete information. I propose a simple procedure to distinguish between the two observationally equivalent explanations. This method requires the knowledge of winning bids and the determinants of the bid of the second most competitive bidder.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call