German Industry Embraces Hybrid Auctions to Revolutionize B-2-B Procurement.
Reverse auctions are commonly used in corporate procurement, but it's unclear if companies are using auction theory to improve their design. A study in Germany found that many companies stick to simpler auction designs like English auctions, even though more complex options like hybrid auctions could be more effective. For auctions with many bidders, hybrid auctions are promising, while Dutch auctions might work better for auctions with fewer bidders. Companies often use variations of English auctions, suggesting that framing effects, not game theory, influence their choices.