Taking the Lab to the Field: Experimental Tests of Alternative Mechanisms to Procure Multiple Contracts
The first part of the paper reports the results from a sequence of laboratory experiments comparing the bidding behavior for multiple contracts in three different sealed bid auction mechanisms; first-price simultaneous, first-price sequential and first-price combinatorial bidding. The design of the experiment is based on experiences from a public procurement auction of road markings in Sweden. Bidders are asymmetric in their cost functions; some exhibit decreasing average costs of winning more than one contract, whereas other bidders have increasing average cost functions. The combinatorial bidding mechanism is demonstrated to be most efficient. The second part of the paper describes how the lab experiment was followed up by a field test of a combinatorial procurement auction of road markings. Copyright Kluwer Academic Publishers 2004
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter Cramton, 1997.
"The FCC Spectrum Auctions: An Early Assessment,"
Papers of Peter Cramton
97jemsfcc, University of Maryland, Department of Economics - Peter Cramton, revised 12 Jul 1998.
- Branco, Fernando, 2001. "On the superiority of the multiple round ascending bid auction," Economics Letters, Elsevier, vol. 70(2), pages 187-194, February.
- Porter, David, 1997. "The Effect of Bid Withdrawal in a Multi-Object Auction," Working Papers 982, California Institute of Technology, Division of the Humanities and Social Sciences.
- Vijay Krishna & Robert Rosenthal, 1995.
"Simultaneous Auctions with Synergies,"
Game Theory and Information
- Marshall Robert C. & Meurer Michael J. & Richard Jean-Francois & Stromquist Walter, 1994. "Numerical Analysis of Asymmetric First Price Auctions," Games and Economic Behavior, Elsevier, vol. 7(2), pages 193-220, September.
- Gale, Ian, 1990.
"A multiple-object auction with superadditive values,"
Elsevier, vol. 34(4), pages 323-328, December.
- Gale, I., 1990. "A Multiple-Object Auction With Superadditive Values," Working papers 9008, Wisconsin Madison - Social Systems.
- Bykowsky, Mark M & Cull, Robert J & Ledyard, John O, 2000.
"Mutually Destructive Bidding: The FCC Auction Design Problem,"
Journal of Regulatory Economics,
Springer, vol. 17(3), pages 205-28, May.
- Bykowsky, Mark M. & Cull, Robert J. & Ledyard, John O., 1998. "Mutually Destructive Bidding: The FCC Auction Design Problem," Working Papers 916, California Institute of Technology, Division of the Humanities and Social Sciences.
- Katzman, Brett, 1999. "A Two Stage Sequential Auction with Multi-Unit Demands," Journal of Economic Theory, Elsevier, vol. 86(1), pages 77-99, May.
- McAfee, R. Preston & McMillan, John., 1990.
726, California Institute of Technology, Division of the Humanities and Social Sciences.
- Peter Cramton & Jesse Schwartz, 2000.
"Collusive Bidding: Lessons from the FCC Spectrum Auctions,"
Papers of Peter Cramton
00jre, University of Maryland, Department of Economics - Peter Cramton, revised 09 Mar 1999.
- Cramton, Peter & Schwartz, Jesse A, 2000. "Collusive Bidding: Lessons from the FCC Spectrum Auctions," Journal of Regulatory Economics, Springer, vol. 17(3), pages 229-52, May.
- von Ungern-Sternberg, Thomas, 1991.
London School of Economics and Political Science, vol. 58(231), pages 341-57, August.
- Thomas VON UNGERN-STERNBERG, 1990. "Swiss Auctions," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9001, Université de Lausanne, Faculté des HEC, DEEP.
- David P. Porter, 1999. "The effect of bid withdrawal in a multi-object auction," Review of Economic Design, Springer;Society for Economic Design, vol. 4(1), pages 73-97.
- Ledyard, John O. & Olson, Mark & Porter, David & Swanson, Joseph A. & Torma, David P., 2000. "The First Use of a Combined Value Auction for Transportation Services," Working Papers 1093, California Institute of Technology, Division of the Humanities and Social Sciences.
- Branco, Fernando, 1997. "Sequential auctions with synergies: An example," Economics Letters, Elsevier, vol. 54(2), pages 159-163, February.
- John O. Ledyard & David Porter & Antonio Rangel, 1997. "Experiments Testing Multiobject Allocation Mechanisms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(3), pages 639-675, 09.
- Klemperer, Paul, 1998.
"Auctions with almost common values: The 'Wallet Game' and its applications,"
European Economic Review,
Elsevier, vol. 42(3-5), pages 757-769, May.
- Paul Klemperer, 1997. "Auctions with Almost Common Values: The Wallet Game and its Applications," Economics Series Working Papers 1998-W03, University of Oxford, Department of Economics.
- Christopher Avery & Terrence Hendershott, 2000. "Bundling and Optimal Auctions of Multiple Products," Review of Economic Studies, Oxford University Press, vol. 67(3), pages 483-497.
- Robert W. Rosenthal & Ruqu Wang, 1995.
"Simultaneous Auctions with Synergies and Common Values,"
0060, Boston University - Industry Studies Programme.
- Rosenthal, Robert W. & Wang, Ruqu, 1996. "Simultaneous Auctions with Synergies and Common Values," Games and Economic Behavior, Elsevier, vol. 17(1), pages 32-55, November.
- Mark Armstrong, 2000. "Optimal Multi-Object Auctions," Review of Economic Studies, Oxford University Press, vol. 67(3), pages 455-481.
When requesting a correction, please mention this item's handle: RePEc:kap:regeco:v:25:y:2004:i:1:p:39-58. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.