Review of Financial Studies Vol. 9 No. 3 1996
Collusion in Uniform-price Auction: Experimental Evidence and Implications for Treasury Auctions
Abstract
[We provide experimental evidence that nonbinding preplay communication between bidders in auctions of shares facilitates the adoption of equilibrium strategies: collusive strategies in uniform-price auctions, and the unique equilibrium in undominated strategies in discriminatory auctions. When communication between bidders is introduced, clearing prices and auctioneer profits in uniform-price auctions fall below those observed in discriminatory auctions. This evidence suggests that uniform-price auctions of Treasury securities may result in lower revenues than the currently employed discriminatory procedure.]
- Volume
- 9
- Issue
- 3
- Pages
- 757-785
- Sources
- bibtex:phds-export.bib