Combinatorial Procurement
Auctions:
A Collusion Remedy?
Anders
Lunander * |
- |
Jan-Eric Nilsson* |
Örebro University |
|
Swedish
National Road
and Transport Research Institute,
Borlänge |
This paper presents the outcome of an experiment where the
standard one shot sealed bid procurement auction for two identical
goods provides the benchmark. Inducing scale economies a combinatorial
auction is applied on the situation with non-linear costs.
The mechanisms are first run without, and then with the possibility
for subjects to communicate prior to bidding. There are two
human and one computer bidder in each period. It is demonstrated
that the combinatorial mechanism is able to enhance efficiency
and that subjects are less inclined to cooperate under the combinatorial
auction than under the standard bidding format. [JEL
Classification: D44, D78]
*anders.lunander@esi.oru.se ; jan-eric.nilsson@vti.se The
Authors are grateful for comments on previous versions from Lance
Brännman, Arne
Andersson and participants at the 2003 North American Meeting of
the ESA. Funding from the Swedish Competition Authority, the National
Rail Administration and from Vinnova is gratefully acknowledged. |