The multidimensional procurement auctions with reference‐based utility

Zhe Chen

Managerial and Decision Economics, 2021, vol. 42, issue 2, 319-325

Abstract: In this paper, we modify standard multidimensional procurement auction models by the assumption of reference‐based utility. We analyze how the reference‐based utility of a buyer affects the outcomes of multidimensional procurement auctions. Furthermore, we also investigate the optimal reference‐based utility of a buyer and demonstrate that the multidimensional procurement auctions with reference‐based utility dominate several other commonly used procedures for buying differentiated products. Our results extend the standard analysis of multidimensional procurement auctions (e.g., Che, 1993; Asker & Cantillon, 2008) to more economically reasonable cases.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3237

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:42:y:2021:i:2:p:319-325

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().