Properties of Scoring Auctions

24 Pages Posted: 16 Dec 2004

See all articles by John Asker

John Asker

UCLA

Estelle Cantillon

Free University of Brussels (VUB/ULB) - ECARES; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 3 versions of this paper

Date Written: September 2007

Abstract

This paper studies scoring auctions, a procedure commonly used to buy differentiated products: suppliers submit offers on all dimensions of the good (price, level of non monetary attributes), and these are evaluated using a scoring rule. We provide a systematic analysis of equilibrium behavior in scoring auctions when suppliers' private information is multidimensional (characterization of equilibrium behavior and expected utility equivalence). In addition, we show that scoring auctions dominate several other commonly used procedures for buying differentiated products, including menu auctions, beauty contests and price-only auctions with minimum quality thresholds.

Keywords: Scoring, Auction, Differentiated Product

JEL Classification: H57, D44

Suggested Citation

Asker, John William and Cantillon, Estelle, Properties of Scoring Auctions (September 2007). Available at SSRN: https://ssrn.com/abstract=609146 or http://dx.doi.org/10.2139/ssrn.609146

John William Asker (Contact Author)

UCLA ( email )

8283 Bunche Hall
Los Angeles, CA 90095-1477
United States

Estelle Cantillon

Free University of Brussels (VUB/ULB) - ECARES ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
B-1050 Brussels
Belgium
+32 2 650 3840 (Phone)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
186
Abstract Views
2,646
rank
124,550
PlumX Metrics