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Quality cut-offs in procurement auctions

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  • Goswami, Mridu Prabal

Abstract

Recently the Government of India used procurement auction mechanisms with endogenously determined minimum quality. We find these auctions have no equilibrium in continuous symmetric monotonic pure strategies. This may substantiate the use of auction mechanisms with exogenously determined minimum quality.

Suggested Citation

  • Goswami, Mridu Prabal, 2013. "Quality cut-offs in procurement auctions," Economics Letters, Elsevier, vol. 121(2), pages 148-151.
    • Handle: RePEc:eee:ecolet:v:121:y:2013:i:2:p:148-151
    DOI: 10.1016/j.econlet.2013.07.020
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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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    Cited by:

    1. Jiancai Pi, 2021. "An investigation of seeming favoritism in public procurement," Manchester School, University of Manchester, vol. 89(1), pages 128-137, January.

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    More about this item

    Keywords

    Procurement; Auction; Minimum quality;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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