This paper studies a public procurement setting in which a seller is requested to submit a cost to be compensated for when delivering a project together with specific technical and economic information. The more complex the information request, the greater the effort the sellers need to exert to deliver a consistent proposal. Each seller is constrained in the sense that its capacity to assess its optimal bidding strategy reaches a limit at the point where the complexity of the information request becomes too demanding for the seller to process it efficiently. We call this point, the information overload point. Under suitable assumptions, we show that the introduction of complexity to the information request leads to a unique equilibrium, where the optimal bids correspond to the bids at which the sellers have reached their information overload. Then, we show that the equilibrium includes other possible types (of a seller) submitting true cost than only the highest cost type.

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