TY  - JOUR
AB  - The decision maker is in charge of procurement auctions at the department of transportation of Orangia (a fictitious U.S. state). Students are asked to assist him in estimating the winning bids in various auctions concerning highway repair jobs using data on past auctions. The decision maker is faced with various professional, statistical, and ethical dilemmas.To analyze highway procurement auctions from the buyer-auctioneer perspective, establish basic facts regarding the project price-to-estimated cost ratio, set up and estimate a structural regression model to predict the winning bid, and compute the probability the winning price will be below estimated cost. Difficulties include heteroskedasticity, logarithmic specification, and omitted variable bias. Also to estimate a Logit regression and predict bidder collusion probability.
VL  - 
IS  - 
SN  - 2474-6568
DO  - 10.1108/case.kellogg.2016.000250
UR  - https://doi.org/10.1108/case.kellogg.2016.000250
AU  - Eso Peter
AU  - Klibanoff Peter
AU  - Schmedders Karl
AU  - Hunter Graeme
PY  - 2017
Y1  - 2017/01/01
TI  - Orangia Highways (A)
T2  - Kellogg School of Management Cases
PB  - Kellogg School of Management
SP  - 1
EP  - 5
Y2  - 2024/04/24
ER  -