Firms commonly form syndicates to bid jointly for financial assets. Recently, this practice has come under legal scrutiny motivated by models which suggest syndicates are anti-competitive. These models do not account for two important features of financial markets: bidders' value estimates are likely to be correlated, and complicated mechanisms known to be optimal in such settings are usually eschewed in favor of simpler auction formats. We show that these features make it possible for syndicate bidding to generate higher revenues for the auctioneer than bidding among independent firms, even when syndicates are asymmetric or lead to a highly concentrated market. This occurs because syndication can make the industry more suitable to the simple auction format in use. We identify conditions under which syndicates are pro-competitive and discuss the implications for antitrust.
Contents
- Frontiers Article
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Requires Authentication UnlicensedOn the Competitive Effects of Bidding SyndicatesLicensedSeptember 11, 2012
- Advances Article
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Requires Authentication UnlicensedTax Morale and Compliance Behavior: First Evidence on a Causal LinkLicensedApril 18, 2012
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Requires Authentication UnlicensedA New Look into the Determinants of the Ecological Discount Rate: Disentangling Social PreferencesLicensedApril 23, 2012
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Requires Authentication UnlicensedImpacts of Family Size on the Family as a Whole: Evidence from the Developing WorldLicensedMay 8, 2012
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Requires Authentication UnlicensedThe Inequality Effects of a Dual Income Tax SystemLicensedJuly 10, 2012
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Requires Authentication UnlicensedSignaling Creditworthiness in Peruvian Microfinance Markets: The Role of Information SharingLicensedOctober 24, 2012
- Contributions Article
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Requires Authentication UnlicensedCyclicality of Real Wages in KoreaLicensedJanuary 20, 2012
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Requires Authentication UnlicensedGraduating High School in a Recession: Work, Education, and Home ProductionLicensedJanuary 31, 2012
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Requires Authentication UnlicensedA Group-based Wellness Intervention in the LaboratoryLicensedMarch 13, 2012
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Requires Authentication UnlicensedTechnology Inertia and the Benefits of EntryLicensedMarch 16, 2012
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Requires Authentication UnlicensedThe Effect of Education on Equity HoldingsLicensedMarch 19, 2012
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Requires Authentication UnlicensedEvaluating Patent Rights With Possible Patent LitigationLicensedMarch 30, 2012
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Requires Authentication UnlicensedThe CPS Redesign's Effects on Measured Unemployment Duration in the Great RecessionLicensedMay 16, 2012
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Requires Authentication UnlicensedA Patent System with a Contingent Delegation Fee under Asymmetric InformationLicensedMay 20, 2012
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Requires Authentication UnlicensedThe Economic Returns to Good Looks and Risky Sex in the Bangladesh Commercial Sex MarketLicensedMay 24, 2012
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Requires Authentication UnlicensedTiming of Retirement Plan Contributions and Investment Returns: The Case of Defined Benefit versus Defined ContributionLicensedMay 29, 2012
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Requires Authentication UnlicensedGreen Jobs and Renewable Electricity Policies: Employment Impacts of Ontario's Feed-in TariffLicensedJune 7, 2012
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Requires Authentication UnlicensedEquilibrium Vertical Integration with Complementary Input MarketsLicensedJune 22, 2012
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Requires Authentication UnlicensedThe Role of Specific Subjects in Education Production Functions: Evidence from Morning Classes in Chicago Public High SchoolsLicensedJune 25, 2012
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Requires Authentication UnlicensedProvision of Multilevel Public Goods by Positive Externalities: Experimental EvidenceLicensedJuly 1, 2012
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Requires Authentication UnlicensedStem Cell Donor Matching for Patients of Mixed RaceLicensedJuly 12, 2012
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Requires Authentication UnlicensedWhen Educators Are the Learners: Private Contracting by Public SchoolsLicensedJuly 17, 2012
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Requires Authentication UnlicensedHuman Capital Formation and Criminal Behavior: The Role of Early Childhood EducationLicensedSeptember 12, 2012
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Requires Authentication UnlicensedExperience Benefits and Firm OrganizationLicensedSeptember 21, 2012
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Requires Authentication UnlicensedRegulating Unverifiable Quality by Fixed-Price ContractsLicensedSeptember 25, 2012
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Requires Authentication UnlicensedPseudo-Adversarialism: A Theoretical Comparison Between the U.S. and Japanese Criminal ProceduresLicensedOctober 11, 2012
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Requires Authentication UnlicensedAsymmetric Information And OvereducationLicensedOctober 24, 2012
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Requires Authentication UnlicensedCompetitive Mixed Bundling of Vertically Differentiated ProductsLicensedNovember 12, 2012
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Requires Authentication UnlicensedTherapeutic Equivalence and the Generic Competition ParadoxLicensedNovember 12, 2012
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Requires Authentication UnlicensedDoes Vertical Separation Necessarily Reduce Quality Discrimination and Increase Welfare?LicensedNovember 15, 2012
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Requires Authentication UnlicensedDoctors' Remuneration Schemes and Hospital Competition in a Two-Sided MarketLicensedNovember 23, 2012
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Requires Authentication UnlicensedCorporate Social Responsibility for IrresponsibilityLicensedNovember 24, 2012
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Requires Authentication UnlicensedHypothetical Bias in Choice Experiments: Is Cheap Talk Effective at Eliminating Bias on the Intensive and Extensive Margins of Choice?LicensedDecember 12, 2012
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Requires Authentication UnlicensedMatching, Wage Rigidities and Efficient Severance PayLicensedDecember 13, 2012
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Requires Authentication UnlicensedThe Prostitute's Allure: The Return to Beauty in Commercial Sex WorkLicensedDecember 13, 2012
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Requires Authentication UnlicensedThe Impact of Inheritances on Heirs' Labor and Capital IncomeLicensedDecember 17, 2012
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Requires Authentication UnlicensedDetermining Public Provision of Education Services in a Sequential Education ProcessLicensedDecember 18, 2012
- Topics Article
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Requires Authentication UnlicensedDemand-Based Cost-of-Children Estimates and Child PovertyLicensedJanuary 7, 2012
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Requires Authentication UnlicensedOrganizational Redesign, Information Technologies and Workplace ProductivityLicensedFebruary 3, 2012
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Requires Authentication UnlicensedThe Effect of Neighborhood Diversity on Volunteering: Evidence From New ZealandLicensedMarch 9, 2012
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Requires Authentication UnlicensedPrice-Dependent Demand in Spatial ModelsLicensedMarch 11, 2012
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Requires Authentication UnlicensedOptimal Taxation of Wealth Transfers When Bequests are Motivated by Joy of GivingLicensedMarch 16, 2012
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Requires Authentication UnlicensedSmaller Pie, Larger Slice: How Bargaining Power Affects the Decision to BundleLicensedApril 17, 2012
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Requires Authentication UnlicensedCollusion in a One-Period Insurance Market with Adverse SelectionLicensedApril 20, 2012
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Requires Authentication UnlicensedAll-You-Can-Eat Buffet: Entry Price, the Fat Tax and Meal CessationLicensedApril 30, 2012
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Requires Authentication UnlicensedForced Migration and the Effects of an Integration Policy in Post-WWII GermanyLicensedMay 15, 2012
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Requires Authentication UnlicensedThe Effect of Mandated Exclusive Territories in the US Brewing IndustryLicensedMay 16, 2012
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Requires Authentication UnlicensedLearning-by-Exporting, Introduction of New Products, and Product Rationalization: Evidence from Korean ManufacturingLicensedMay 31, 2012
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Requires Authentication UnlicensedPoverty, Informality and the Optimal General Income Tax PolicyLicensedJuly 31, 2012
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Requires Authentication UnlicensedInternational Environmental Cooperation under Fairness and ReciprocityLicensedAugust 21, 2012
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Requires Authentication UnlicensedDeterminants of Corruption: Government Effectiveness vs. Cultural NormsLicensedAugust 22, 2012
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Requires Authentication UnlicensedDoes More Time Spent Calling Home Correlate with Higher Remittances? Evidence from Migrants in the State of QatarLicensedSeptember 11, 2012
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Requires Authentication UnlicensedDo Smart Growth Strategies Have a Role in Curbing Vehicle Miles Traveled? A Further Assessment Using Household Level Survey DataLicensedSeptember 11, 2012
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Requires Authentication UnlicensedOwnership and Quality in Markets with Asymmetric Information: Evidence from Nursing HomesLicensedOctober 12, 2012
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Requires Authentication UnlicensedConstraints in the Demand for Education: What Can we Learn from Subjective Assessments?LicensedOctober 18, 2012
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Requires Authentication UnlicensedEducation, Maternal Smoking, and the Earned Income Tax CreditLicensedOctober 24, 2012
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Requires Authentication UnlicensedFirms' Investment under Financial and Infrastructure Constraints: Evidence from In-House Generation in Sub-Saharan AfricaLicensedOctober 24, 2012
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Requires Authentication UnlicensedComparing Benefits and Total Compensation between Similar Federal and Private-Sector WorkersLicensedOctober 26, 2012
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Requires Authentication UnlicensedDo Rising Top Income Shares Affect the Incomes or Earnings of Low and Middle-Income Families?LicensedNovember 12, 2012
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Requires Authentication UnlicensedTest Measurement Error and Inference from Value-Added ModelsLicensedNovember 15, 2012
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Requires Authentication UnlicensedCosts of Engaging in Corruption: Equilibrium with Extortion and FramingLicensedDecember 5, 2012
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Requires Authentication UnlicensedOn the Relationship between Tariff Levels and the Nature of MergersLicensedDecember 17, 2012
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Requires Authentication UnlicensedWhen Do Independent Distributors Undersupply Promotional Services?LicensedDecember 17, 2012
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Requires Authentication UnlicensedA Theory of Optimal Quality Reports with InertiaLicensedDecember 18, 2012