Collusion Facilitating and Collusion Breaking Power of Simultaneous Ascending and Descending Price Auctions.

This article demonstrates that a robust tacit collusion evolves quickly in a “collusion incubator” environment but is destroyed by the simultaneous descending price auction. Theories of collusion-producing behavior, along with the detail of the states on which strategies are conditioned, lead to a d...

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Publicado en:Economic Inquiry Vol. 47; no. 3; pp. 395 - 425
Autores principales: Brown, Alexander L., Plott, Charles R., Sullivan, Heidi J.
Formato: Artículo
Publicado: Wiley-Blackwell July 2009
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Collusion Facilitating and Collusion Breaking Power of Simultaneous Ascending and Descending Price Auctions.
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          Brown, Alexander L.
          Plott, Charles R.
          Sullivan, Heidi J.
      su:
        Price fixing
        Mathematical models of pricing
        Auctions
        Mathematical models
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        subj:
          Price fixing
          Mathematical models of pricing
          Auctions
          Mathematical models
      ab: This article demonstrates that a robust tacit collusion evolves quickly in a “collusion incubator” environment but is destroyed by the simultaneous descending price auction. Theories of collusion-producing behavior, along with the detail of the states on which strategies are conditioned, lead to a deeper understanding of how tacit collusion evolves and its necessary conditions. These theories explain how the descending price auction destroys the collusion. The experiments proceed by conducting simultaneous ascending price auctions in the collusion incubator. Then, once the tacit collusion developed, changing to the descending auction. The change moved prices from collusive levels to near-competitive levels. (JEL C71, C92, D43, D44) Reprinted by permission of the publisher.
      pubtype: Academic Journal
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    language: English
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