A Note on the Comparative Statics of Optimal Procurement Auctions

Publication Year: 2009
Gonzalo Cisternas and Nicolás Figueroa.

We find a sufficient condition such that a distributional upgrade on a seller’s cost distribution implies a lower expected procurement cost for a buyer. We also show that even under the strongest assumption about this upgrade made in the literature so far, the seller can be worse off, even if this upgrade is costless.