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Properties of Scoring Auctions

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  • Cantillon, Estelle
  • Asker, John

Abstract

This Paper studies scoring auctions, a procedure commonly used to buy differentiated products: suppliers submit offers on all dimensions of the good (price, level of non monetary attributes), and these are evaluated using a scoring rule. We provide a systematic analysis of equilibrium behaviour in scoring auctions when suppliers? private information is multidimensional (characterization of equilibrium behaviour and expected utility equivalence) and show that scoring auctions dominate several other commonly used procedures for buying differentiated products.

Suggested Citation

  • Cantillon, Estelle & Asker, John, 2004. "Properties of Scoring Auctions," CEPR Discussion Papers 4734, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4734
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Procurement; Multi-attribute; Multidimensional private information; Auction;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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