Auctions and corruption: An analysis of bid rigging by a corrupt auctioneer

摘要: In many auctions, the auctioneer is an agent of seller. This invites corruption. We analyze a model in which orchestrates bid rigging by inviting bidder to either lower or raise his bid, whichever more profitable. The interplay between these two types corruption gives rise complex bidding problem that we tackle with numerical methods. Our results indicate does not only redistribute surplus away from seller, but also distorts efficiency. furthermore explain why both, and bidders, have vested interest maintaining