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 formats for procuring a good. The four formats are a sealed … buyer. These results support and generalize findings on sales auctions. However, not all of our findings on procurement …

procurements. Any bid less than the endogenous minimum price is referred to as abnormally low and is excluded from the procurement … our different cost condition when subjects’ identifications and all their bids are revealed. -- Public procurement ; First …-price auction ; Experiment ; Abnormally low tender ; Endogenous minimum price …

. We do so in procurement settings where the buyer can give the winning bidder incentives to exert effort on non …-price dimensions after the auction. Both auctions theoretically implement the surplus maximizing mechanism. Our experiment confirms …