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

Dakshina De Silva, Georgia Kosmopoulou, Beatrice Pagel () and Ronald Peeters

Review of Industrial Organization, 2013, vol. 42, issue 3, 343 pages

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. Copyright Springer Science+Business Media, LLC. 2013

Keywords: Multi-unit auctions; Procurement auctions; D44; H57 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The impact of timing on bidding behavior in procurement auctions of contracts with private costs (2012)
Working Paper: The impact of timing on bidding behavior in procurement auctions of contracts with private costs (2010)
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DOI: 10.1007/s11151-012-9354-8

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