The targeted design of auctions has to take behavioral regularities into account. This pa- per explores whether procurement auction formats can take advantage of bidders' willingness- to-pay-willingness-to-accept disparity. In a laboratory experiment, we compare four different second-price...

This paper discusses a capacity-based redispatch mechanism in which awarded market participants are compensated for their availability for redispatch, rather than activation. The rationale is to develop a market design that prevents so-called “inc-dec gaming” when including flexible...

Auctions with endogenous rationing have been introduced to stimulate competition. Such (procurement) auctions reduce the volume put out to tender when competition is low. This paper finds a strong negative effect of endogenous rationing on participation when bid-preparation is costly,...

The targeted design of auctions has to take behavioral regularities into account. This paper explores whether procurement auction formats can take advantage of bidders' willingness-to-pay-willingness-to-accept disparity. In a laboratory experiment, we compare four different second-price auction...