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A budget-constrained buyer wants to purchase items from a shortlisted set. Items are differentiated by observable quality and sellers have private reserve prices for their items. The buyer's problem is to select a subset of maximal quality. Money does not enter the buyer's objective function,...
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The procurement of complex projects is often plagued by large cost overruns. One important reason for these additional … costs are flaws in the initial design. If the project is procured with a price-only auction, sellers who spotted some of the …
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