In many auctions, the auctioneer is an agent of the seller. This delegation invites corruption. In this paper we … propose a model of corruption, examine how corruption affects the auction game, how the anticipation of corruption affects … that may prevent corruption, and compare them to the fee schedules employed by major auction houses. …

In many auctions, the auctioneer is an agent of the seller. This invites corruption. We propose a model of corruption … profitable. We characterize equilibriumbidding in first- and second-price auctions, show how corruption distorts the allocation …, and why both the auctioneer and bidders may have a vested interest in maintaining corruption. Bid rigging is initiated by …

corruption risks often observed in negotiated procedures. For rule-based procedures, we show that a "third-price lottery" in …