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Procuring price and quality using scoring auctions: where do we stand?

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  • Riccardo Camboni Marchi Adani

    (University of Padova)

Abstract

This study assesses the rapidly growing literature on scoring rule auctions (SRA), in which all participants submit a multidimensional bid comprising prices and levels of one or more qualities. These elements are weighted using a linear combination, that is, the scoring function. The result of this function is a score and the bid that obtains the highest score is awarded the contract. We provide a comprehensive overview of key theoretical and empirical results. In addition, we discuss structural estimation techniques applied to SRA and we conclude with three main limitations of this awarding mechanism.

Suggested Citation

  • Riccardo Camboni Marchi Adani, 2018. "Procuring price and quality using scoring auctions: where do we stand?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 17-36, March.
    • Handle: RePEc:spr:epolin:v:45:y:2018:i:1:d:10.1007_s40812-017-0088-3
    DOI: 10.1007/s40812-017-0088-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Scoring rule auctions; Public procurement; Literature review;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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