Costa Rica: 'Dutch Auction'

Using an electronic procurement system, Mer-Link, the government will promote a 'Dutch auction' or auction to buy at the lowest price.

Tuesday, August 23, 2011


Alicia Avendaño, director of the Technical Secretariat of Digital Government, told La Prensa Libre, that they will start with an online auction after the first week of September. This procedure has not been previously applied at the level of state purchases.

The director added that "the sale will go to 'the highest bidder" As a seller I am looking to get the best price. As a buyer, I will buy from whoever sells at the cheapest rate. So it is clear that the bidding is between vendors, not buyers. They compete for who makes the cheapest offer, in favour of the institution or entity to wishing to buy, the result of which is that it directly benefits the bidding. "



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Various government authorities are promoting three different system in efforts that seem to be heading in conflicting directions.

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