DETECTING COLLUSION IN PROCUREMENT AUCTIONS

Abstract

early stage with this research. Paul Milgrom, Steve Tadelis and Steve Brenner also provided very useful comments on various parts of this work. Pueo Keffer provided outstanding research assistance. All remaining errors are our own. * * Stanford University Collusion is an agreement among a group of firms, called a cartel, designed to limit competition among the participants. If all firms in the cartel follow the agreement, buyers will face higher prices, giving the cartel members profits above the normal competitive level. State and Federal Statutes have proscribed such agreements to protect consumers from collusive behavior, and