Economics Professor Kirill Chernomaz in the News
News + Events : Economics Professor Kirill Chernomaz in the News
Kirill Chernomaz, assistant professor of economics, has authored a paper titled "On the Effects of Joint Bidding in Independent Private Value Auctions: An Experimental Study." The paper has been accepted by the journal Games and Economic Behavior and is currently in press.
Kirill’s article explores the effect of a subset of symmetric bidders joining to bid together. Among possible applications are mergers, collusion and legal joint-bidding arrangements. Theoretically predicted effects include inefficiency, a decrease in the seller's revenue, and higher bidders' payoffs. The inefficiency prediction is not supported by the experimental data. Kirill also finds that the degree of bidders' risk aversion is crucial in determining the incentives to bid jointly both in theory and in the data.