Combinatorial auctions in public procurement: Experiences from sweden

Abstract

Combinatorial procurement auctions are increasingly being employed in the private and public sector as an alternative to simultaneous single contract auctions. This mechanism has the advantage that it enables suppliers to express synergies across bundles of public contracts. This mitigates the exposure problem and also has the potential to both lower the price paid by the procuring authority and to enhance efficiency. This paper provides stylized facts of recently performed combinatorial public procurements in various markets in Sweden.