Header

UZH-Logo

Maintenance Infos

The impact of capacity costs on bidding strategies in procurement auctions


Göx, Robert; Budde, Jörg (1999). The impact of capacity costs on bidding strategies in procurement auctions. Review of Accounting Studies, 4(1):5-13.

Abstract

This paper analyzes the impact of capacity costs on bidding strategies of firms participating in procurement auctions. More efficient firms will invest in advance due to their high probability of winning the auction while less efficient bidders prefer to wait with their investments until the outcome of the auction is known. However, in equilibrium both types of firms include a coverage for their investment costs in their bids and therefore adopt a full cost pricing policy.

Abstract

This paper analyzes the impact of capacity costs on bidding strategies of firms participating in procurement auctions. More efficient firms will invest in advance due to their high probability of winning the auction while less efficient bidders prefer to wait with their investments until the outcome of the auction is known. However, in equilibrium both types of firms include a coverage for their investment costs in their bids and therefore adopt a full cost pricing policy.

Statistics

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:1999
Deposited On:27 Jun 2013 07:29
Last Modified:05 Apr 2016 16:50
Publisher:Springer
ISSN:1380-6653
Publisher DOI:https://doi.org/10.1023/A:1009620820703
Other Identification Number:merlin-id:8222

Download

Full text not available from this repository.
View at publisher