The Design of Multidimensional Auctions
AbstractProcurement auctions usually require the bid to specify several characteristics of the contract to be fulfilled. In this article I study the design of such mechanisms, allowing for a special case of correlation of the firm's costs. I describe the properties of optimal mechanisms and study the design of multidimensional auctions. Contrary to the independent-costs model, to implement the optimal outcome the procurer will need to use a two-stage auction: in the first stage the procurer selects one firm; in the second stage he bargains to readjust the level of quality to be provided.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 28 (1997)
Issue (Month): 1 (Spring)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Makoto HANAZONO & Jun NAKABAYASHI & Masanori TSURUOKA, 2013. "Procurement Auctions with General Price-Quality Evaluation," KIER Working Papers 845, Kyoto University, Institute of Economic Research.
- John Asker & Estelle Cantillon, 2010.
"Procurement when price and quality matter,"
RAND Journal of Economics,
RAND Corporation, vol. 41(1), pages 1-34.
- Asker, John & Cantillon, Estelle, 2007. "Procurement when Price and Quality Matter," CEPR Discussion Papers 6082, C.E.P.R. Discussion Papers.
- John Asker & Estelle Cantillon, 2010. "Procurement when Price and Quality Matter," ULB Institutional Repository 2013/99378, ULB -- Universite Libre de Bruxelles.
- John Asker & Estelle Cantillon, 2006. "Procurement When Price and Quality Matter," Working Papers 06-24, New York University, Leonard N. Stern School of Business, Department of Economics.
- Asker, John & Cantillon, Estelle, 2005. "Optimal Procurement When Both Price and Quality Matter," CEPR Discussion Papers 5276, C.E.P.R. Discussion Papers.
- Müller, Rudolf & Perea, Andrés & Wolf, Sascha, 2007. "Combinatorial Scoring Auctions," Research Memoranda 020, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization.
- Kevin Yili Hong & Alex Chong Wang & Paul A. Pavlou, 2013. "How does Bid Visibility Matter in Buyer-Determined Auctions? Comparing Open and Sealed Bid Auctions in Online Labor Markets," Working Papers 13-05, NET Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.