Gong, Jiong; Li, Jianpei; McAfee, R. Preston - In: Journal of Public Economics 96 (2012) 1, pp. 188-197
award the entire production to a single supplier. We examine the effect of using multiple suppliers on investment incentives …. In a framework of generalized second-price auctions with pre-auction investment, we show that the optimality of split …-award depends on the socially efficient number of firms at the investment stage. When that number is greater than one, sole …