Abstract: This paper provides an overview of auction theory literature. We present a general review on literature of various auctions and focus ourselves specifically on an English auction. We are interested in modelling bidder's behavior in an English auction environment. And hence, we present an overview of the New Zealand wool auction followed by a model that would describe a bidder's decision making behavior from the New Zealand wool auction. The mathematical assumptions in an English auction environment are demonstrated from the perspective of the New Zealand wool auction.
Abstract: This paper provides an overview of auction theory
literature. We present a general review on literature of various
auctions and focus ourselves specifically on an English auction. We
are interested in modelling bidder-s behavior in an English auction
environment. And hence, we present an overview of the New Zealand
wool auction followed by a model that would describe a bidder-s
decision making behavior from the New Zealand wool auction. The
mathematical assumptions in an English auction environment are
demonstrated from the perspective of the New Zealand wool auction.
Abstract: Limited competition has been a serious concern in infrastructure procurement. Importantly, however, there are normally a number of potential bidders initially showing interest in proposed projects. This paper focuses on tackling the question why these initially interested bidders fade out. An empirical problem is that no bids of fading-out firms are observable. They could decide not to enter the process at the beginning of the tendering or may be technically disqualified at any point in the selection process. The paper applies the double selection model to procurement data from road development projects in developing countries and shows that competition ends up restricted, because bidders are self-selective and auctioneers also tend to limit participation depending on the size of contracts.Limited competition would likely lead to high infrastructure procurement costs, threatening fiscal sustainability and economic growth.