Document Type

Article

Publication Date

10-2014

Department

Economics

Abstract

This note contains the equilibrium bid functions for two types of common-value procurement auctions: 1) a procurement auction in which bids represent an enforceable contract; 2) a procurement auction in which, upon learning the true cost of supplying the good, the winning bidder can renegotiate the contract with the buyer, and each bidder must submit a bond with their bid, which is returned at the end of the auction unless they are the low bidder and renegotiate the contract.

Required Publisher's Statement

Original version is available from the publisher at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=50303#.VDVShfldWSo

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