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INFORMATION REVELATION AND BUYER PROFITS IN REPEATED PROCUREMENT COMPETITION -super-

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  • CHARLES J. THOMAS

Abstract

I investigate how procurement costs are affected by the information that buyers reveal about sellers' behavior, in a setting with two sequentially offered contracts for which a seller's privately known costs are identical. Expected prices are lowest when sellers learn nothing until all contracts are allocated, are higher when they learn all sellers' price offers as contracts are allocated, and typically are even higher when they learn only the winner's identity, or the winner's identity and price offer. The results suggest that buyers engaged in repeated procurement may pay less by revealing minimal or extensive information, rather than an intermediate amount. Copyright 2010 The Authors. Journal compilation 2010 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

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  • Charles J. Thomas, 2010. "INFORMATION REVELATION AND BUYER PROFITS IN REPEATED PROCUREMENT COMPETITION -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 58(1), pages 79-105, March.
  • Handle: RePEc:bla:jindec:v:58:y:2010:i:1:p:79-105
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    References listed on IDEAS

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    Cited by:

    1. Azacis, Helmuts, 2017. "Information Disclosure by a Seller in a Sequential First-Price Auction," Cardiff Economics Working Papers E2017/2, Cardiff University, Cardiff Business School, Economics Section.
    2. Dirk Bergemann & Johannes Horner, 2010. "Should Auctions be Transparent?," Cowles Foundation Discussion Papers 1764R, Cowles Foundation for Research in Economics, Yale University, revised Sep 2014.
    3. Hong Wang, 2016. "Optimal implicit collusion in repeated procurement auctions," Journal of Economics, Springer, vol. 117(3), pages 259-284, April.
    4. Ignacio Esponda, 2008. "Information feedback in first price auctions," RAND Journal of Economics, RAND Corporation, vol. 39(2), pages 491-508.
    5. Timothy N. Cason & Karthik N. Kannan & Ralph Siebert, 2011. "An Experimental Study of Information Revelation Policies in Sequential Auctions," Management Science, INFORMS, vol. 57(4), pages 667-688, April.

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