Does Auction Design Facilitate Collusion?

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doi:10.1016/j.econmod.2025.107389

Does Auction Design Facilitate Collusion?

2025-11-19

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DOI：10.1016/j.econmod.2025.107389

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• Two-stage auctions increase the risk of bidder collusion in land sales. • Collusion is more likely when reserve prices are secret and bidding is transparent. • Raising reserve prices can help deter collusion and protect seller revenue. • Reserve-price clustering signals collusion, not just poor land or weak demand. • Auction design reform must consider both transparency and coordination risk.

Does Auction Design Facilitate Collusion?

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