Auctions and Bid Rigging
- R. Preston McAfee ,
- Michael Williams ,
- Kenneth Hendricks
in The Oxford Handbook of International Antitrust Economics
2014, Vol 2
Roger D. Blair and D. Daniel Sokol
This chapter surveys the theoretical and empirical literature on bid rigging in auctions. In particular, it reviews the theory and practice of bidding rings in one-shot auctions and in repeated auctions. The main theme is how the type of auction, whether it is first-price or second-price, sealed bid or oral, affects the incentive of bidders to collude and the way in which they collude.