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Pre-auction or post-auction qualification?

Author

Listed:
  • Philippe Gillen

    (Centre for European Economic Research (ZEW))

  • Vitali Gretschko

    (Centre for European Economic Research (ZEW))

  • Alexander Rasch

    (University of Duesseldorf Universitaetsstrasse 1)

Abstract

We compare auctions with bidder qualification before or after the bidding process. We show that although post-auction qualification is more efficient, the auctioneer prefers pre-auction qualification when bidders’ qualification costs are high.

Suggested Citation

  • Philippe Gillen & Vitali Gretschko & Alexander Rasch, 2017. "Pre-auction or post-auction qualification?," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(2), pages 139-150, October.
    • Handle: RePEc:spr:etbull:v:5:y:2017:i:2:d:10.1007_s40505-016-0108-x
    DOI: 10.1007/s40505-016-0108-x
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    References listed on IDEAS

    as
    1. Sela, Aner & Kaplan, Todd, 2003. "Auctions with Private Entry Costs," CEPR Discussion Papers 4080, C.E.P.R. Discussion Papers.
    2. Tan, Guofu & Yilankaya, Okan, 2006. "Equilibria in second price auctions with participation costs," Journal of Economic Theory, Elsevier, vol. 130(1), pages 205-219, September.
    3. Zhixi Wan & Damian R. Beil & Elena Katok, 2012. "When Does It Pay to Delay Supplier Qualification? Theory and Experiments," Management Science, INFORMS, vol. 58(11), pages 2057-2075, November.
    4. Zhixi Wan & Damian R. Beil, 2009. "RFQ Auctions with Supplier Qualification Screening," Operations Research, INFORMS, vol. 57(4), pages 934-949, August.
    5. Blume, Andreas & Heidhues, Paul, 2004. "All equilibria of the Vickrey auction," Journal of Economic Theory, Elsevier, vol. 114(1), pages 170-177, January.
    6. Zhixi Wan & Damian R. Beil, 2009. "RFQ Auctions with Supplier Qualification Screening," Post-Print hal-00471441, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Seres, G. & Pigon, Adam, 2019. "On the Competitive Effects of Screening in Procurement," Other publications TiSEM 3314c398-ea79-4f74-96f4-8, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    Bidding cost; Qualification; Second-price sealed-bid auction;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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