Chen, Chien-Liang; Tauman, Yair - In: Economic Theory 28 (2006) 1, pp. 145-172
Most of the literature on collusive behavior in auctions ignores two important issues that make collusion difficult to … auctions where one bidder offers another bidder a side payment in exchange for not participating in the auction, while the … number of other bidders is stochastic. In spite of the barriers to collusion mentioned above, a simple side payment mechanism …