Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The impact of timing on bidding behavior in procurement auctions of contracts with private costs
AU - De Silva, Dakshina
AU - Kosmopoulou, Georgia
AU - Pagel, Beatrice
AU - Peeters, Ronald
PY - 2013/5
Y1 - 2013/5
N2 - 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.
AB - 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.
KW - Multi-unit auctions
KW - Procurement auctions
U2 - 10.1007/s11151-012-9354-8
DO - 10.1007/s11151-012-9354-8
M3 - Journal article
VL - 42
SP - 321
EP - 343
JO - Review of Industrial Organization
JF - Review of Industrial Organization
SN - 0889-938X
IS - 3
ER -