Collusion between suppliers in reverse auctions may damage buyers’ benifits and then lower efficiency of resource allocation. Under first-price sealed-bid reverse auction mechanism, suppliers' equilibrium bidding strategy and buyers' revenue loss was analyzed considering collusion. Then some general conclusions were given: suppliers' bidding strategy is relevant to some factors such as valuation costs, the number of suppliers and Cartel; the number of suppliers and Carter can lead to buyers revenue loss. Finally, considering two different kinds of distribution function, the strategies of improving buyer’s revenue were discussed.
Jian, Tian and Xinxin, Xu, "Game Study on Collusion in the First-price Sealed-bid Reverse Auction" (2013). WHICEB 2013 Proceedings. 94.