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Price Determination in Public Procurement: A Game Theory Approach
Award procedure Bid price Game theory Public procurement
2016/1/27
The article examines mechanism of bid price determination in public procurement by individual tenderers. A game theory approach is used to analyse this process. Firstly, a simple model with two firms ...
Finding an optimal mechanism in a standard adverse selection model is equivalent to solving an infinite dimensional linear program. We begin with certain feasible mechanisms— those implemented by auct...