Journal of Economics

, Volume 90, Issue 1, pp 1–27 | Cite as

Sequential versus Bundle Auctions for Recurring Procurement

Article

Abstract

We compare sequential and bundle procurement auctions in a framework of successive procurement situations, where current success positively or negatively affects future market opportunities. We find that in bundle auctions procurement cost is lower and less risky than in sequential standard auctions, but still higher than in the optimal sequential auction. Only a sequential second price auction leads to the efficient outcome.

Keywords

sequential auctions bundling stochastic scale effects procurement 

JEL Classification

D44 H57 D92 

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Copyright information

© Springer-Verlag Wien 2006

Authors and Affiliations

  1. 1.Staatswissenschaftliches SeminarUniversity of CologneKölnGermany

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