Collusion in auctions may lead to lower revenues for Treasury.
Uniform-price auctions of shares can lead to collusion among bidders, where they work together to maximize their profits. Communication before the auction can help bidders reach this collusive outcome. In contrast, discriminatory auctions tend to result in bidders following a specific strategy that ensures they gain the smallest possible profit. This suggests that Treasury auctions using uniform-price methods may generate less revenue compared to discriminatory methods.