Bucciol, Alessandro; Chillemi, Ottorino; Palazzi, Giacomo - In: European Journal of Political Economy 30 (2013) C, pp. 35-42
We study the effect on cost overruns of two different auction formats, the first price sealed bid and the average bid … average bid format awards the contract to the bid closest to the average of all the bids. This latter format is supposed to … maintenance. We find that cost overruns are lower under the average bid format, but only when the entry is restricted. We then …