Document Type
Article
Publication Date
10-2014
Department 1
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.
Copyright Note
This is the publisher's version of the work. This publication appears in Gettysburg College's institutional repository by permission of the copyright owner for personal use, not for redistribution.
DOI
10.4236/tel.2014.48078
Recommended Citation
Baltaduonis, Rimvydas and Lucas Rentschler. "Common-Value Procurement Auctions with Renegotiation." Theoretical Economics Letters 4.8 (October 2014), 619-622.
Required Publisher's Statement
Original version is available from the publisher at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=50303#.VDVShfldWSo