Bayesian implementation and rent extraction in a multi-dimensional procurement problem

• Published in: International journal of industrial organization Vol. 70; p. 102521
• Main Authors: Herweg, Fabian, Schmidt, Klaus M.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.05.2020
• Subjects: Auction; Correlated types; Inefficient renegotiation; Multidimensional screening; Procurement; Procurement; Multidimensional screening; D44; Auction; D47; H57; Correlated types; Inefficient renegotiation; D82

•We consider a multi-dimensional procurement problem.•Sellers have private information about their costs and about a possible design flaw.•We compare the efficient Bayesian to the ex post incentive compatible mechanism. We consider a multi-dimensional procurement problem in which sellers have privat...