prices are believed to reflect market conditions which are the most satisfactory, as the firm would most likely be a good forecaster of economic changes.

Auctions

In repeated auctions, bidders might participate in a tacit collusion to keep bids low. A profitable collusion is possible, if the number of bidders is finite and the identity of the winner is publicly observable. It can be very difficult or even impossible for the seller to detect such collusion from the distribution of bids only. In

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