{"id":"https://openalex.org/W4415667827","doi":"https://doi.org/10.1287/opre.2023.0337","title":"Local Cost Synergies in Reverse Auctions: An Application to Road Salt Procurement","display_name":"Local Cost Synergies in Reverse Auctions: An Application to Road Salt Procurement","publication_year":2025,"publication_date":"2025-10-29","ids":{"openalex":"https://openalex.org/W4415667827","doi":"https://doi.org/10.1287/opre.2023.0337"},"language":"en","primary_location":{"id":"doi:10.1287/opre.2023.0337","is_oa":false,"landing_page_url":"https://doi.org/10.1287/opre.2023.0337","pdf_url":null,"source":{"id":"https://openalex.org/S125775545","display_name":"Operations Research","issn_l":"0030-364X","issn":["0030-364X","1526-5463"],"is_oa":false,"is_in_doaj":false,"is_core":true,"host_organization":"https://openalex.org/P4310315699","host_organization_name":"Institute for Operations Research and the Management Sciences","host_organization_lineage":["https://openalex.org/P4310315699"],"host_organization_lineage_names":["Institute for Operations Research and the Management Sciences"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Operations Research","raw_type":"journal-article"},"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5082774984","display_name":"Diwakar Gupta","orcid":"https://orcid.org/0000-0002-4716-2504"},"institutions":[{"id":"https://openalex.org/I86519309","display_name":"The University of Texas at Austin","ror":"https://ror.org/00hj54h04","country_code":"US","type":"education","lineage":["https://openalex.org/I86519309"]}],"countries":["US"],"is_corresponding":true,"raw_author_name":"Diwakar Gupta","raw_affiliation_strings":["The University of Texas at Austin, Austin, Texas 78705"],"affiliations":[{"raw_affiliation_string":"The University of Texas at Austin, Austin, Texas 78705","institution_ids":["https://openalex.org/I86519309"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5076578416","display_name":"Matt Schmitt","orcid":"https://orcid.org/0000-0002-8203-0419"},"institutions":[{"id":"https://openalex.org/I4210151656","display_name":"Lake Research Partners","ror":"https://ror.org/05r9qv072","country_code":"US","type":"other","lineage":["https://openalex.org/I4210151656"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Matt Schmitt","raw_affiliation_strings":["Econic Partners, Washington, District of Columbia 20001"],"affiliations":[{"raw_affiliation_string":"Econic Partners, Washington, District of Columbia 20001","institution_ids":["https://openalex.org/I4210151656"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5103138762","display_name":"Ioannis Stamatopoulos","orcid":"https://orcid.org/0000-0002-3651-0788"},"institutions":[{"id":"https://openalex.org/I86519309","display_name":"The University of Texas at Austin","ror":"https://ror.org/00hj54h04","country_code":"US","type":"education","lineage":["https://openalex.org/I86519309"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Ioannis Stamatopoulos","raw_affiliation_strings":["The University of Texas at Austin, Austin, Texas 78705"],"affiliations":[{"raw_affiliation_string":"The University of Texas at Austin, Austin, Texas 78705","institution_ids":["https://openalex.org/I86519309"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":3,"corresponding_author_ids":["https://openalex.org/A5082774984"],"corresponding_institution_ids":["https://openalex.org/I86519309"],"apc_list":null,"apc_paid":null,"fwci":0.0,"has_fulltext":false,"cited_by_count":0,"citation_normalized_percentile":{"value":0.37107038,"is_in_top_1_percent":false,"is_in_top_10_percent":false},"cited_by_percentile_year":null,"biblio":{"volume":"74","issue":"2","first_page":"651","last_page":"666"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T11182","display_name":"Auction Theory and Applications","score":0.9315999746322632,"subfield":{"id":"https://openalex.org/subfields/1803","display_name":"Management Science and Operations Research"},"field":{"id":"https://openalex.org/fields/18","display_name":"Decision Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T11182","display_name":"Auction Theory and Applications","score":0.9315999746322632,"subfield":{"id":"https://openalex.org/subfields/1803","display_name":"Management Science and Operations Research"},"field":{"id":"https://openalex.org/fields/18","display_name":"Decision Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10698","display_name":"Transportation Planning and Optimization","score":0.006200000178068876,"subfield":{"id":"https://openalex.org/subfields/3313","display_name":"Transportation"},"field":{"id":"https://openalex.org/fields/33","display_name":"Social Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11043","display_name":"Merger and Competition Analysis","score":0.005900000222027302,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/procurement","display_name":"Procurement","score":0.8700000047683716},{"id":"https://openalex.org/keywords/common-value-auction","display_name":"Common value auction","score":0.5554999709129333},{"id":"https://openalex.org/keywords/reverse-auction","display_name":"Reverse auction","score":0.521399974822998},{"id":"https://openalex.org/keywords/competitive-advantage","display_name":"Competitive advantage","score":0.40130001306533813},{"id":"https://openalex.org/keywords/competition","display_name":"Competition (biology)","score":0.39730000495910645},{"id":"https://openalex.org/keywords/cost-estimate","display_name":"Cost estimate","score":0.3671000003814697},{"id":"https://openalex.org/keywords/salt","display_name":"Salt (chemistry)","score":0.320499986410141},{"id":"https://openalex.org/keywords/control","display_name":"Control (management)","score":0.30959999561309814}],"concepts":[{"id":"https://openalex.org/C201650216","wikidata":"https://www.wikidata.org/wiki/Q829492","display_name":"Procurement","level":2,"score":0.8700000047683716},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.6269000172615051},{"id":"https://openalex.org/C163239763","wikidata":"https://www.wikidata.org/wiki/Q5153637","display_name":"Common value auction","level":2,"score":0.5554999709129333},{"id":"https://openalex.org/C194291561","wikidata":"https://www.wikidata.org/wiki/Q2852717","display_name":"Reverse auction","level":3,"score":0.521399974822998},{"id":"https://openalex.org/C40700","wikidata":"https://www.wikidata.org/wiki/Q1411783","display_name":"Industrial organization","level":1,"score":0.49959999322891235},{"id":"https://openalex.org/C58546491","wikidata":"https://www.wikidata.org/wiki/Q1150207","display_name":"Competitive advantage","level":2,"score":0.40130001306533813},{"id":"https://openalex.org/C91306197","wikidata":"https://www.wikidata.org/wiki/Q45767","display_name":"Competition (biology)","level":2,"score":0.39730000495910645},{"id":"https://openalex.org/C93983250","wikidata":"https://www.wikidata.org/wiki/Q795053","display_name":"Cost estimate","level":2,"score":0.3671000003814697},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.3359000086784363},{"id":"https://openalex.org/C21547014","wikidata":"https://www.wikidata.org/wiki/Q1423657","display_name":"Operations management","level":1,"score":0.3352999985218048},{"id":"https://openalex.org/C134560507","wikidata":"https://www.wikidata.org/wiki/Q753291","display_name":"Environmental economics","level":1,"score":0.33489999175071716},{"id":"https://openalex.org/C42475967","wikidata":"https://www.wikidata.org/wiki/Q194292","display_name":"Operations research","level":1,"score":0.32089999318122864},{"id":"https://openalex.org/C2776371256","wikidata":"https://www.wikidata.org/wiki/Q12370","display_name":"Salt (chemistry)","level":2,"score":0.320499986410141},{"id":"https://openalex.org/C2775924081","wikidata":"https://www.wikidata.org/wiki/Q55608371","display_name":"Control (management)","level":2,"score":0.30959999561309814},{"id":"https://openalex.org/C127454912","wikidata":"https://www.wikidata.org/wiki/Q942582","display_name":"Cost\u2013benefit analysis","level":2,"score":0.29600000381469727},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.2865000069141388},{"id":"https://openalex.org/C182299520","wikidata":"https://www.wikidata.org/wiki/Q1289588","display_name":"Total cost","level":2,"score":0.28619998693466187},{"id":"https://openalex.org/C3017581826","wikidata":"https://www.wikidata.org/wiki/Q1077518","display_name":"Cost control","level":2,"score":0.2854999899864197},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.28540000319480896},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.27129998803138733},{"id":"https://openalex.org/C102408133","wikidata":"https://www.wikidata.org/wiki/Q5156350","display_name":"Competitive analysis","level":3,"score":0.26089999079704285},{"id":"https://openalex.org/C94107157","wikidata":"https://www.wikidata.org/wiki/Q1077518","display_name":"Cost accounting","level":2,"score":0.25769999623298645},{"id":"https://openalex.org/C126221108","wikidata":"https://www.wikidata.org/wiki/Q7310977","display_name":"Relevant cost","level":3,"score":0.25699999928474426},{"id":"https://openalex.org/C11644782","wikidata":"https://www.wikidata.org/wiki/Q15401790","display_name":"Cost efficiency","level":2,"score":0.2556999921798706},{"id":"https://openalex.org/C2993663582","wikidata":"https://www.wikidata.org/wiki/Q5174773","display_name":"Cost structure","level":2,"score":0.250900000333786}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.1287/opre.2023.0337","is_oa":false,"landing_page_url":"https://doi.org/10.1287/opre.2023.0337","pdf_url":null,"source":{"id":"https://openalex.org/S125775545","display_name":"Operations Research","issn_l":"0030-364X","issn":["0030-364X","1526-5463"],"is_oa":false,"is_in_doaj":false,"is_core":true,"host_organization":"https://openalex.org/P4310315699","host_organization_name":"Institute for Operations Research and the Management Sciences","host_organization_lineage":["https://openalex.org/P4310315699"],"host_organization_lineage_names":["Institute for Operations Research and the Management Sciences"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Operations Research","raw_type":"journal-article"}],"best_oa_location":null,"sustainable_development_goals":[],"awards":[],"funders":[],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":35,"referenced_works":["https://openalex.org/W1982862737","https://openalex.org/W2007173213","https://openalex.org/W2021497249","https://openalex.org/W2029050771","https://openalex.org/W2033316373","https://openalex.org/W2049036761","https://openalex.org/W2051151477","https://openalex.org/W2053910446","https://openalex.org/W2060947088","https://openalex.org/W2070907189","https://openalex.org/W2074934918","https://openalex.org/W2114087331","https://openalex.org/W2119073508","https://openalex.org/W2120416704","https://openalex.org/W2134549012","https://openalex.org/W2136554921","https://openalex.org/W2145769891","https://openalex.org/W2545672086","https://openalex.org/W2886513384","https://openalex.org/W2921475887","https://openalex.org/W3082352967","https://openalex.org/W3099380623","https://openalex.org/W3122348207","https://openalex.org/W3123260353","https://openalex.org/W3123369853","https://openalex.org/W3125207567","https://openalex.org/W3125381859","https://openalex.org/W3125593659","https://openalex.org/W3125999389","https://openalex.org/W4205856993","https://openalex.org/W4225131023","https://openalex.org/W4231029393","https://openalex.org/W4238246998","https://openalex.org/W4285647522","https://openalex.org/W4322752851"],"related_works":[],"abstract_inverted_index":{"Each":[0],"winter,":[1],"Minnesota\u2019s":[2],"Department":[3],"of":[4,11,49,103],"Transportation":[5],"purchases":[6],"nearly":[7],"a":[8],"quarter-million":[9],"tons":[10],"road":[12],"salt":[13],"through":[14],"competitive":[15],"auctions.":[16],"In":[17],"Local":[18],"Cost":[19],"Synergies":[20],"in":[21],"Reverse":[22],"Auctions:":[23],"An":[24],"Application":[25],"to":[26,61,89],"Road":[27],"Salt":[28],"Procurement":[29],"(Gupta,":[30],"Schmitt,":[31],"and":[32,85],"Stamatopoulos),":[33],"the":[34,77],"authors":[35,97],"show":[36],"that":[37,79,99],"large":[38,57],"firms":[39,58,81],"benefit":[40],"from":[41],"\u201clocal":[42],"cost":[43,73,111],"synergies\u201d":[44],"when":[45],"they":[46,69],"win":[47,83],"clusters":[48],"nearby":[50],"depots.":[51],"Because":[52],"these":[53],"synergies":[54],"reduce":[55],"costs,":[56],"are":[59],"able":[60],"bid":[62],"about":[63],"9%":[64],"lower,":[65],"on":[66],"average,":[67],"than":[68,94],"would":[70],"otherwise.":[71],"This":[72],"advantage":[74],"sharply":[75],"reduces":[76],"probability":[78],"small":[80],"will":[82],"contracts":[84],"leads":[86],"simultaneous":[87],"auctions":[88,105],"allocate":[90],"depots":[91],"less":[92],"efficiently":[93],"possible.":[95],"The":[96],"conclude":[98],"any":[100],"rigorous":[101],"examination":[102],"procurement":[104],"must":[106],"explicitly":[107],"account":[108],"for":[109],"local":[110],"synergies;":[112],"ignoring":[113],"them":[114],"risks":[115],"producing":[116],"misleading":[117],"results.":[118]},"counts_by_year":[],"updated_date":"2026-03-21T06:30:42.041108","created_date":"2025-10-29T00:00:00"}