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We show that it is beneficial for a buyer to conduct a multi-stage mechanism if bidders are loss averse. In a first step, we derive a revenue equivalence principle. Fixing the multi-stage structure, the revenue is independent of the chosen payment rule. Secondly, we introduce a simple two-stage...
Persistent link: https://www.econbiz.de/10012146346
-contract suppliers but has little bargaining power due to time pressure. Academic/Practical Relevance: The mitigation of supply risks … show that in such a setting multi-sourcing does not only reduce the supply risk but might also yield lower prices than …
Persistent link: https://www.econbiz.de/10012388963