Design of Auction Parameters to Reduce the Effect of Collusion

摘要: Government departments are increasingly turning to auctions procure goods and services. Collusion among bidders, however, reduces competition raises winning bid prices. Since conventional collusion control measures based on the redesign of auction mechanisms less effective in government procurement auctions, there is a need devise that decrease effect collusion. This article demonstrates how principles design experiments can be applied system dynamics model find parameter values substantially reduce auctions. research makes number contributions. First, it develops feedback-based dynamic mechanism The proposes price as being determined not by total bidders but independent bidders. It defines each cartel one bidder regardless cartel. Second, tested developing for procuring contracts roadwork projects India. Third, experimental ensure high participation low price-to-reserve ratios.