Reverse auction

(redirected from Procurement auction)

Reverse auction

An auction where the role of buyer and seller is reversed. The buyer advertises a need and sellers compete to provide the product or service. Generally the seller with the lowest bid wins the auction.
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References in periodicals archive ?
The Alberta Electric System Operator has submitted an implementation plan to the provincial government, and is planning to hold a first procurement auction before the end of 2016.
We analyze a procurement auction with n sellers bidding for a project offered by one buyer.
The government conducted a public procurement auction over several stages.
The responsibility for [crude] oil and fuel procurement auction itself has been taken over by Pertamina" under his division, which is also in charge of the ISC.
In a first-price sealed-bid procurement auction, each supplier independently submits a single bid without seeing the bids of others.
In other words, there is a trade-off as the combinatorial procurement auction may solve the exposure problem (lowering the offered prices from global bidders), it also introduces a free riding behavior (less aggressive bids from local bidders).
Nikolov notes that the latest type of cartel which the anti-trust watchdog came across involved public procurement auction manipulations.
The GSA is conducting a lease procurement auction and expects to make an award in the near future, he said.
Additional arguments for restricting the number of bidders are found in Hallwood [1996], who discusses the advantages and disadvantages with an invited bidding procurement auction compared with an open bidding procurement auction and posted-pricing and negotiation.
In a typical state-level procurement auction held in the United States, firms submit sealed bids for a particular project that has been advertised in advance by the state's Department of Transportation.
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