In an important experiment begun in 1992, the Fed instituted a single-price, or Dutch, auction system for selected 2-year and 5-year Treasury notes. In a traditional Treasury auction, securities are allocated to the highest bidders, in descending order of the prices they bid, until all securities to be issued are awarded. Thus, winning bidders for the same security pay different amounts, and the highest bidder pay the same price. Many experts believe that the traditional bidding system encourages primary dealers, who must bid at every auction, to collude in their efforts to minimize the winner’s curse. The traditional system may also encourage cornering: Winning bidders may attempt to compensate for the winner’s curse by earning excess profits as they resell securities they have won at the auction.