| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5067360 | European Economic Review | 2009 | 13 Pages |
Abstract
When the owner of an object sells it through an auction run by an agent of hers, corruption may appear. In a first-price auction, corruption can make honest bidders more or less aggressive, or their behavior can remain unchanged. We identify sufficient conditions for each of the three possibilities. We analyze the effects of corruption on efficiency, bidders' welfare and expected revenue. Our results apply as well to the situation-unrelated to corruption-where one of the bidders is granted a right of first refusal.
Keywords
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Leandro Arozamena, Federico Weinschelbaum,