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The Impact of Timing on Bidding Behavior in Procurement Auctions of Contracts with Private Costs

De Silva, Dakshina and Kosmopoulou, Georgia and Pagel, Beatrice and Peeters, Ronald (2013) The Impact of Timing on Bidding Behavior in Procurement Auctions of Contracts with Private Costs. Review of Industrial Organization, 42 (3). pp. 321-343. ISSN 0889-938X

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Abstract

We provide a comparison of bidding behavior between multi-round and single-round auctions considering bid lettings for asphalt construction contracts that are known to have primarily private costs. Using a reduced-form difference-in-difference approach as well as the nonparametric estimation technique that was proposed by Racine and Li (J Econom 119(1):99–130, 2004) we find that bidding is more aggressive in a sequential multi-round setting than in a simultaneous single-round format. We explore potential causes for the bidding difference across formats that are related to synergies and the level of bidder participation.

Item Type: Article
Journal or Publication Title: Review of Industrial Organization
Uncontrolled Keywords: Multi-unit auctions ; Procurement auctions
Subjects: H Social Sciences > HB Economic Theory
Departments: Lancaster University Management School > Economics
ID Code: 58105
Deposited By: ep_importer_pure
Deposited On: 03 Sep 2012 13:37
Refereed?: Yes
Published?: Published
Last Modified: 13 May 2013 11:33
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/58105

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