Shill Bidding in English Auctions

@inproceedings{Wang2001ShillBI,
  title={Shill Bidding in English Auctions},
  author={Wenli Wang and Zolt{\'a}n Hidv{\'e}gi and Andrew B. Whinston},
  year={2001}
}
Shill bidding in Englishauctionis thedeliberateplacingbidson theseller’s behalfto artificially drive up the price of his auctioneditem. Shill bidding hasbeenknownto occur in auctionsof high-valueitemslike art andantiqueswhere bidders’ valuationsdiffer andtheseller’s payof fromfraudis high. We provethat privatevalueEnglishauctionswith shill biddingcanresultin a higherexpectedsellerprofit thanfirstandsecondprice sealed-bidauctions.To detershill bidding, we introducea mechanismwhich makesshill… CONTINUE READING
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