costs of all suppliers by running a descending open-bid auction, or conceal them by running a first price sealed-bid auction … decisions: price, which is bid by the supplier; and a fixed quality adjustment cost, which is included by the buyer to capture … non-price factors such as a supplier's quality and reliability. Suppliers know only their own true production cost and …

government could have made, had it used the optimal mechanism (which happens to be a LoLA), relative to a first-price auction …’s and social surplus in the presence of adverse selection. The LoLA features a floor (or minimum) price, and a reserve (or … maximum) price. Conveniently, the LoLA has a dominant strategy equilibrium that, under mild regularity conditions, is unique …