How clever fishermen outsmarted a uniform price auction | with Alex Teytelboym
Game Changer - the game theory podcast
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Fishing Economics - Is There Collusive Bidding?
The feruease government, presumably had multiple objectives. One of them was to allocate the quota as well as possible. The other one was to raise revenue. But it was clear very quickly that they were not really succeeding in that revenue objective. It could be that the demand is low and the prices are just low. And so in fact, you just ended up more or less guessing what the market price could be. What we observed is that the bidders were submitting very high bids for very low quantities of fishing quota. These bids were extraordinarily high. They were much higher than what the marketprice for fish was - which tells you that they were really quite high.
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