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 …-bid auction and three di erent descending-clock auctions. We assume that a bidder's willingness-to-accept exceeds his willingness …

We consider a multi-dimensional procurement problem in which sellers have private information about their costs and … Bayesian procurement mechanism that implements the efficient allocation under the constraint that sellers are protected by …

Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient … allocation rules that award the project to a less efficient firm with positive probability. Procurement projects often involve ex … post moral hazard after the competitive process is over. A procurement mechanism must combine an incentive scheme with the …

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

In procurement auctions, bidders are usually better informed about technical, financial, or legal aspects of the goods … and services procured. Therefore, the buyer may include a dialogue in the procurement procedure which enables the … question of the value added of letting the sourcing process consist of both an auction and a negotiation stage, theoretically …

-price auction ; Experiment ; Abnormally low tender ; Endogenous minimum price … procurements. Any bid less than the endogenous minimum price is referred to as abnormally low and is excluded from the procurement … first-price auction which do not have any minimum price. We find that winning prices of this new institution (i) coincide …

Cost overrun is ubiquitous in public procurement. We argue that this can be the result of a constraint optimal award … a simple design initially enhances competition in the auction. Moreover, the procurer cannot benefit from using a multi …-dimensional auction, as the optimal scoring rule depends only on the price. …