Ewerhart, Christian; Fieseler, Karsten - In: RAND Journal of Economics 34 (2003) 3, pp. 569-81
In competitive procurement auctions, bids often have the form of unit-price contracts (UPCs). We show that optimal bidding behavior in UPC auctions is typically nonmonotonic and therefore may lead to inefficient allocations. However, UPC auctions may still be desirable for the buyer when...
