The vulnerability of auctions to bidder collusion

Journal Article (Journal Article)

Previous work has addressed the relative vulnerability of different auction schemes to collusive bidding. The common wisdom is that ascending-bid and second-price auctions are highly susceptible to collusion. We show that the details of ascending-bid and second-price auctions, including bidder registration procedures and procedures for information revelation during the auction, can be designed to completely inhibit, or unintentionally facilitate, certain types of collusion. If auctions are designed without acknowledging the possibility of collusion then the design will ignore key features that impact the potential success of colluding bidders. © 2009 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Full Text

Duke Authors

Cited Authors

  • Marshall, RC; Marx, LM

Published Date

  • May 1, 2009

Published In

Volume / Issue

  • 124 / 2

Start / End Page

  • 883 - 910

Electronic International Standard Serial Number (EISSN)

  • 1531-4650

International Standard Serial Number (ISSN)

  • 0033-5533

Digital Object Identifier (DOI)

  • 10.1162/qjec.2009.124.2.883

Citation Source

  • Scopus