Combinatorial procurement auctions enable suppliers to pass their potential cost synergies on to the procuring entity and may therefore lead to lower costs and enhance efficiency. However, bidders might find it profitable to inflate their stand-alone bids in order to favour their package bids....

Combinatorial procurement auctions are desirable as they enable bidding firms to pass their potential cost synergies on to the procuring entity and may lead to a reduction in cost for the procuring entity and enhancing efficiency. However, an assessment of the benefits of the combinatorial...