We compare two commonly used mechanisms in procurement: auctions and negotiations. The execution of the procurement …

price difference between the procedures using data from Czech public procurement. The model predicts that auctions are more … high-cost firms are selected for the closed procedure. In accordance with the first prediction, we find that open auctions … closed procedures. Comparing all four awarding procedures, we find that open auctions are the most efficient procedure used …

Public agencies mainly rely on two modes to procure goods and services: auctions and direct negotiations. We study a … 1994 policy change in Germany that introduced the possibility to procure rail services in auctions as well as in direct …, auctions improve service levels and reduce prices. As a result, surplus on auctioned lines increased by about 30 …