Munich Personal RePEc Archive

The impact of timing on bidding behavior in procurement auctions of contracts with private costs

De Silva, Dakshina G. and Kosmopoulou, Georgia and Pagel, Beatrice and Peeters, Ronald (2010): The impact of timing on bidding behavior in procurement auctions of contracts with private costs.

[img]
Preview
PDF
MPRA_paper_27355.pdf

Download (179kB) | Preview

Abstract

We provide a comparison of bidding behavior between multi-round and single-round auctions considering bid lettings for asphalt construction contracts. Using a reduced-form difference-in-difference approach as well as the nonparametric estimation technique proposed by Racine and Li (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 related to synergies and level of bidder participation.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.