We analyze strategic leaks due to spying out a rival’s bid in a first-price auction. Such leaks induce sequential bidding, complicated by the fact that the spy may be a counterspy who serves the interests of the spied at bidder and reports strategically distorted information. This ambiguity...

We study an infinitely repeated oligopoly game in which firms compete on quantity and one of them is capacity constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little incentive to deviate from a cartel. We also present...

RAND commitments i.e., promises to license on reasonable and non-discriminatory terms play a key role in standard setting processes. However, the usefulness of those commitments has recently been questioned. The problem allegedly lies in the absence of a generally agreed test to determine...

We analyze strategic leaks due to spying out a rival’s bid in a first-price auction. Such leaks induce sequential bidding, complicated by the fact that the spy may be a counterspy who serves the interests of the spied at bidder and reports strategically distorted information. This ambiguity...

We conduct an experimental study of cartel behaviour in the presence of an active competition authority that may respond to suspicious pricing behaviour by firms. We find that subjects are doing very well in developing strategies to avoid antitrust detection. We observe gradual price increases...

We study an infinitely repeated oligopoly game in which firms compete on quantity and one of them is capacity constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little incentive to deviate from a cartel. We also present...

We study cheap-talk pre-play communication in the static all-pay auctions. For the case of two bidders, all correlated and communication equilibria are payoff equivalent to the Nash equilibrium if there is no reserve price, or if it is commonly known that one bidder has a strictly higher value....

One of the fundamental results of auction theory is the Linkage Principle, which states that the seller's expected revenue is enhanced by ex ante full public disclosure of information about the value of the good. Previous literature has established that the Principle fails in dynamic settings....

A competition authority has an objective, which specifies what output profile firms need to produce as a function of production costs. These costs change over time and are only known by the firms. The objective is implementable if inequilibrium, the firms cannot collude on their reports to the...

We study the implications of delegating bids to a bidding agency for the revenues and efficiency of the Generalized Second-Price auction, the standard sales mechanism for allocating online ad space. The agency maximizes both its own profits and the advertisers' surplus and implements collusive...