Procurement with a strong insider

C-Tier
Journal: Economics Letters
Year: 2024
Volume: 241
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We consider a procurement auction with a “strong” insider and N outside bidders. Within the confines of uniformly distributed independent private values, we compare a standard second price auction with a “tournament” in which the outsiders bid first to win the right to compete with the insider. The bids of the outsiders are binding and the highest bidder proceeds to a second-price competition with the insider. We take the insider to be “sufficiently strong” relative to the insiders.

Technical Details

RePEc Handle
repec:eee:ecolet:v:241:y:2024:i:c:s0165176524002696
Journal Field
General
Author Count
2
Added to Database
2026-01-24