This paper examines bidding behavior in a setting where post-bid-letting project modifications occur. These modifications change both the costs and payouts to the winning contractor, making the contract incomplete. Recent empirical research shows that bidders incorporate the likelihood of such...

This paper examines bidding behavior in a setting where post-bid-letting project modifications occur. These modifications change both the costs and payouts to the winning contractor, making the contract incomplete. Recent empirical research shows that bidders incorporate the likelihood of such...

In procurement auctions, there are situations where a bidder's cost is uncertain at the time of bidding, leading to a "winner's curse." We use bridgework data from the State of Oklahoma and an empirical auction model to explore whether the winner's curse also affects entry, which can have...