Publication: Tacit Collusion in Repeated Auctions: Uniform versus Discriminatory
Loading...
Identifiers
Publication date
2003-09
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell
Abstract
Within an infinitely repeated game, I compare the level and conduct of
collusion under uniform and discriminatory auctions. For this purpose,
I characterize the optimal collusive schemes and sets of sustainable profits under these auction formats. I show that uniform auctions
facilitate collusion more than discriminatory auctions: the optimal
penal code is equally severe under the two formats; but bidders’ deviation incentives are weaker in uniform auctions given that the payoff irrelevant bids can be used to relax the enforcement problem. This
discussion is particularly relevant after the recent reforms in the
electricity industry in England & Wales, and elsewhere.
Description
This is the accepted version of the following article: Fabra, N. (2003), Tacit Collusion in Repeated Auctions: Uniform Versus Discriminatory. The Journal of Industrial Economics, 51(3), 271–293, which has been published in final form at: http://dx.doi.org/10.1111/1467-6451.00201
Keywords
Bibliographic citation
Journal of Industrial Economics (2003), 51(3), 271-293