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Communication and reputation in procurement auctions — Some empirical evidence

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  • Heinrich, Timo

Abstract

This paper studies communication and reputation in market interactions using data from online procurement auctions. Positive reputation ratings and engaging in communication increase a bidder’s probability of winning. Messages are primarily used to reduce the asymmetric information associated with transactions.

Suggested Citation

  • Heinrich, Timo, 2012. "Communication and reputation in procurement auctions — Some empirical evidence," Economics Letters, Elsevier, vol. 114(2), pages 164-167.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:2:p:164-167
    DOI: 10.1016/j.econlet.2011.09.014
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    Cited by:

    1. Jeannette Brosig-Koch & Werner Güth & Torsten Weiland, 2016. "Comparing the effectiveness of collusion devices in first-price procurement: an auction experiment," Evolutionary and Institutional Economics Review, Springer, vol. 13(2), pages 269-295, December.
    2. Heinrich, Timo & Brosig-Koch, Jeannette, 2015. "Promises and Social Distance in Buyer-Determined Procurement Auctions," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112892, Verein für Socialpolitik / German Economic Association.
    3. Fugger, Nicolas & Gillen, Philippe & Gretschko, Vitali & Kokott, Gian-Marco & Riehm, Tobias, 2025. "Auctions vs. negotiations: The role of communication in an experiment with procurement managers," ZEW Discussion Papers 25-039, ZEW - Leibniz Centre for European Economic Research.
    4. Brosig-Koch, Jeannette & Heinrich, Timo & Sterner, Martin, 2023. "Bilateral communication in procurement auctions," MPRA Paper 117612, University Library of Munich, Germany.
    5. Brosig-Koch, Jeannette & Heinrich, Timo, 2018. "The role of communication content and reputation in the choice of transaction partners," Games and Economic Behavior, Elsevier, vol. 112(C), pages 49-66.

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    More about this item

    Keywords

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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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