Case Detail

Case Summary

Orangia Highways (A)

Case Number: 5-106-007(A), Year Published: 2006, Revision Date: August 20, 2007

HBS Number: KEL185

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Authors: Karl Schmedders; Peter Eso; Peter Klibanoff; Graeme Hunter

Key Concepts

Linear Regression, Logarithmic Regression, Omitted Variable Bias, Logit Regression, Bidding in Auctions

Abstract

The decision maker is in charge of procurement auctions at the department of transportation of Orangia (a fictitious U.S. state). Students are asked to assist him in estimating the winning bids in various auctions concerning highway repair jobs using data on past auctions. The decision maker is faced with various professional, statistical, and ethical dilemmas.

Number of Pages: 8

Extended Case Information

Teaching Areas: Economics, Operations, Strategy, Statistical Methods

Teaching Note Available: Yes

Geographic: US

Industry: Government

Organization Name: Orangia Department of Transportation

Organization Department: Contracts Department

Organization Size: Medium

Decision Maker Position: Department Head

Decision Maker Gender: Male

Year of Case: 2006