We study the Generalized Second Price auctions – a standard method for allocating online search advertising – experimentally, considering both the static environment assumed by the prevailing theory and a dynamic game capturing the salient aspects of real-world search advertising auctions....

We develop a signaling model of prestige seeking in competitive college applications. A prestigious program attracts high-ability applicants, making its admissions more selective, which in turn further increases its prestige, and so on. This amplifying effect results in a program with negligible...

We examine the use of breakup fees as a device for target firms to recruit white knights in response to a hostile takeover bid. When bidders have interdependent valuations of the target, the possible use of a breakup fee to subsidize entry of a subsequent bidder overdisciplines the initial...

We study an optimal collusion-proof auction in an environment where subsets of bidders may collude not just on their bids but also on their participation. Despite their ability to collude on participation, informational asymmetry facing the potential colluders can be exploited significantly to...