Koc, Sevket Alper; Neilson, William S. - In: Economics Letters 99 (2008) 2, pp. 238-241
Bidders can bribe the auctioneer before they bid, with the auctioneer lowering the winner's bid if the winner paid the bribe. In equilibrium bidders employ a cutoff strategy and corruption affects neither efficiency nor the bidders' expected payoffs.