Preferential treatment in procurement auctions through information revelation
AbstractWe study a model of procurement auctions in which information policies can be used to treat two heterogeneous suppliers asymmetrically. The buyer is shown to be better off revealing information about her preferences to the weak supplier only, when there is a sufficient cost difference between the weak and the strong. Conversely, when the two competitors have similar cost structures, for the buyer it is best to disclose her preferences publicly.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/ecolet
Procurement; Information revelation; Discriminatory policy; Asymmetric auctions;
Other versions of this item:
- Domenico Colucci & Nicola Doni & Vincenzo Valori, 2012. "Preferential treatment in procurement auctions through information revelation," DiMaD Working Papers 2012-06, Dipartimento di Matematica per le Decisioni, Universita' degli Studi di Firenze.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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DiMaD Working Papers
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