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A Note on the Comparative Statics of Optimal Procurement Auctions

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  • Gonzalo Cisternas
  • Nicolás Figueroa

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Abstract

We find a necessary and sufficient condition such that a distributional upgrade on a seller’s cost implies a lower expected procurement cost for a buyer. We also show that even under the strongest assumption about this upgrade made in the literature so far, the seller can be worse off, even if this upgrade is costless.

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Bibliographic Info

Paper provided by Centro de Economía Aplicada, Universidad de Chile in its series Documentos de Trabajo with number 240.

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Date of creation: 2007
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Handle: RePEc:edj:ceauch:240

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  1. Nicolás Figueroa & Gonzalo Cisternas, 2007. "Sequential Procurement Auctions and Their Effect on Investment Decisions," Documentos de Trabajo 230, Centro de Economía Aplicada, Universidad de Chile.
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