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Multi-attribute procurement auctions with risk averse suppliers

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  • Liu, Shulin
  • Li, Jun
  • Liu, De

Abstract

We analyze multi-attribute procurement auctions with risk-averse suppliers. As the number of suppliers increases or the suppliers become more risk-averse, the equilibrium bidding price decreases under the first-score auction but remains the same under the second-score auction. A buyer prefers the first-score auction.

Suggested Citation

  • Liu, Shulin & Li, Jun & Liu, De, 2012. "Multi-attribute procurement auctions with risk averse suppliers," Economics Letters, Elsevier, vol. 115(3), pages 408-411.
    • Handle: RePEc:eee:ecolet:v:115:y:2012:i:3:p:408-411
    DOI: 10.1016/j.econlet.2011.12.099
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    References listed on IDEAS

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    1. Yeon-Koo Che, 1993. "Design Competition through Multidimensional Auctions," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 668-680, Winter.
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    Citations

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    Cited by:

    1. Jain, Vipul & Panchal, Gajanan B. & Kumar, Sameer, 2014. "Universal supplier selection via multi-dimensional auction mechanisms for two-way competition in oligopoly market of supply chain," Omega, Elsevier, vol. 47(C), pages 127-137.
    2. Zhang, Meng & Kong, Zhaojun, 2022. "A multi-attribute double auction and bargaining model for emergency material procurement," International Journal of Production Economics, Elsevier, vol. 254(C).
    3. Feng, Jianghong & Chen, Feng, 2025. "A recycling mechanism for used electric vehicle batteries by integrating affine maximizer auction and fuzzy axiomatic design method," Energy, Elsevier, vol. 334(C).
    4. Krishnendu Ghosh Dastidar, 2014. "Scoring Auctions," Studies in Microeconomics, , vol. 2(1), pages 35-48, June.
    5. Zhe Chen, 2021. "The multidimensional procurement auctions with reference‐based utility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 319-325, March.
    6. Matteucci, Nicola, 2021. "Procuring NGA infrastructure: The performance of EMAT auctions in Italy," Telecommunications Policy, Elsevier, vol. 45(1).

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    Keywords

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    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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