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I think that I once heard that in Switzerland the second cheapest bidder is the one to get the contract, exactly to discourage someone aggressively underbidding

I think that I once heard that in Switzerland the second cheapest bidder is the one to get the contract, exactly to discourage someone aggressively underbidding all others. I could not verify that now though.

blocked_again 5y ago
What is the right solution here from a game theory perspective?
- bhaak 5y ago
  Own two companies that agressively underbid all others?
  - xcambar 5y ago
    That is deceptively simple. It might just work :D
- z77dj3kl 5y ago
  Auction design is a very active research area and what the "right solution" is, is not so easy to figure out. This has huge applications in... adtech.