Aryal, Gaurab; Gabrielli, Maria F. - In: International Journal of Industrial Organization 31 (2013) 1, pp. 26-35
This paper proposes a two step procedure to detect collusion in asymmetric first-price procurement (auctions). First, we use a reduced form test to short-list bidders whose bidding behavior is at-odds with competitive bidding. Second, we estimate the (latent) cost for these bidders under both...