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Problem 2.2 Suppose a subset S of the bidders in a second-price single-item auction decide to collude, meaning that they submit their bids in a
Problem 2.2 Suppose a subset S of the bidders in a second-price single-item auction decide to collude, meaning that they submit their bids in a coordinated way to maximize the sum of their utilities. Assume that bidders outside of S bid truthfully. Prove necessary and sufficient conditions on the set S such that the bidders of S can increase their combined utility via non-truthful bidding.
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