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In [2], the authors are interested in auction design, information structure and bidding behavior that influence the market outcome when bidders do not fully know about their competitor costs.
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Mr. Nicolin, the regulator, agreed that the competitors' costs are too high.
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That is a serious competitive disadvantage, considering their foreign competitors' costs are much lower because they are based in countries with nationalized health care systems and have almost no retirees in this country.
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2. Find out about competitors' costs.
This eliminates another motivation raising competitors' costs —for contracting in an oligopoly.
In this paper, we analyze the ability of different auction structures to induce the efficient dispatch in a one-shot framework where generators know their own and competitors' costs with certainty.
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