Split-Award Auctions: Insights from Theory and Experiments

• Published in: Management science Vol. 65; no. 1; pp. 71 - 89
• Main Authors: Chaturvedi, Aadhaar, Katok, Elena, Beil, Damian R.
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.01.2019; Institute for Operations Research and the Management Sciences
• Subjects: Analysis; Auction theory; Auctions; Awards & honors; Bidding; Bids; Costs; Experiments; multisourcing; Prices; Purchasing; Regret; Research subjects; sourcing rules; Suppliers; United States

We investigate procurement in a setting in which the buyer is bound by sourcing rules. Sourcing rules may limit the minimum and maximum amounts of business that can be awarded to a single supplier or dictate the minimum number of suppliers who are awarded business, thus necessitating split awards. T...