A large midwestern hospital is expecting an increase in surgical caseload. New operating room (OR) capacity can be had by building new ORs or extending the working hours in the current ORs. The choice among these options is complicated by the fact that patients, surgeons and surgical staff, and...

This paper examines pre-auction investments made by asymmetric agents that compete for a supply contract from a monopolist principal. Agents are privately aware of their managerial efficiencies which determine how well they can leverage fixed investments to reduce their variable costs for...