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Undergraduate Thesis:
A Comparison of Multiple and Single Attribute Auctioning Methods in the California Department of Transportation
Winner of the Best Undergraduate Senior Economics Honors Thesis Award at UCI - 2008
Abstract:
This paper examines multiple attribute auctions for procurement contracts in the
California Department of Transportation where firms bid on both project cost and duration, and
compares these projects to single attribute auctions where firms bid solely on project cost. Two
specific questions are addressed: why are projects selected for a multiple attribute auction, and
what is the relationship between auction type and project length. Statistical comparisons of the
two auction types support a hypothesis that Caltrans faces asymmetric information when
determining optimal project length. Furthermore, regression estimates find a significant
difference in project length between projects from the two auction types with multiple attribute
auctions having a shorter length of about eighty days.