We study the effect on cost overruns of auction formats (average bid as opposed to …first price rule) conditional on … such sectors as road works and building maintenance. It is commonly believed that cost overruns are lower under average bid …

auction formats (average bid as opposed to first price rule) conditional on the entry mechanisms (free as opposed to limited … access). It is commonly believed that cost overruns are lower under average bid auctions relative to first price auctions. We … average bid format in free entry auctions may reflect collusion. …

We study the effect on cost overruns of two different auction formats, the first price sealed bid and the average bid … average bid format awards the contract to the bid closest to the average of all the bids. This latter format is supposed to … maintenance. We find that cost overruns are lower under the average bid format, but only when the entry is restricted. We then …