Bidding on Price and Quality: An Experiment on the Complexity of Scoring Rule Auctions

A-Tier
Journal: Review of Economics and Statistics
Year: 2025
Volume: 107
Issue: 3
Pages: 755-770

Authors (4)

Riccardo Camboni (not in RePEc) Luca Corazzini (not in RePEc) Stefano Galavotti (Università degli Studi di Bari...) Paola Valbonesi (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

We experimentally study procurement auctions when both quality and price matter. We compare two treatments where sellers compete on one dimension only (price or quality), with three treatments where sellers submit a price-quality bid and the winner is determined by a scoring rule that combines the two offers. We find that, in the scoring rule treatments, efficiency and buyer’s utility are lower than predicted. Estimates from a Quantal Response Equilibrium model suggest that increasing the dimension of the strategy space imposes a complexity burden on sellers, so that a simpler mechanism like a quality-only auction may be preferable.

Technical Details

RePEc Handle
repec:tpr:restat:v:107:y:2025:i:3:p:755-770
Journal Field
General
Author Count
4
Added to Database
2026-01-25