Garratt, Rod; Troger, Thomas; Zheng, Charles Zhoucheng - Department of Economics, Iowa State University - 2007
The English auction is susceptible to tacit collusion when post-auction inter-bidder resale is allowed. We show this by constructing equilibria where, with positive probability, one bidder wins the auction without any competition and divides the spoils by optimally reselling the good to the...
