Which of the following statements is NOT true?
A) Collusion at an auction is not possible because the bidders cannot communicate.
B) The expected revenue generated by an open auction will tend to increase as you provide more information to the bidders about the other bids.
C) The expected revenue generated by a private-value auction increases with the number of bidders.
D) The winner's curse is more likely to arise in sealed-bid auctions than in English auctions.

Question

Quizplus · Accepted Answer

Collusion is possible in any type of auction, including open or sealed-bid auctions. Bidders can communicate through various means such as signals, implicit agreements, or direct communication. However, collusion is illegal and can be difficult to achieve in practice due to the risks of detection and punishment.

Which of the Following Statements Is NOT True