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

B-Tier
Journal: Review of Industrial Organization
Year: 2013
Volume: 42
Issue: 3
Pages: 321-343

Authors (4)

Dakshina De Silva (not in RePEc) Georgia Kosmopoulou (University of Oklahoma) Beatrice Pagel (not in RePEc) Ronald Peeters (University of Otago)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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

Technical Details

RePEc Handle
repec:kap:revind:v:42:y:2013:i:3:p:321-343
Journal Field
Industrial Organization
Author Count
4
Added to Database
2026-01-25