Auction Formats and Award Rules
in
Swedish Procurement Auctions
Sofia
Lundberg * |
Umeå University |
This paper provides an empirical analysis of outcomes from
Swedish procurement auctions given award criterion and auction
format. The auctions are single-unit sealed bid auctions or
their simultaneous counterpart and contracts can be awarded
to the lo west bidder or in accordance with qualitative criteria.
The empirical results provide no evidence of differences in
winning bids depending on the auction format. The award rule
on the other hand matters; a horizontal comparison shows higher
winning bids on contracts awarded to other than the lowest
bidder. The effect of bidder interaction and bidder identity
is also considered.
[JEL Classification:D44, H57]
*
sofia.lundberg@econ.umu.se Financial support from the Swedish Competition Authority is gratefully
acknowledged as insightful comments from Linda Andersson, Johan
Lundberg, Gustavo Piga, Lars Westin, and seminar participants at
the 32nd Congress of the Economic Association for Research in Industrial
Economics in Porto. |