Calcul économique et incertitude socio-politique : une procédure d’évaluation des projets publics
[eng] Public Contract Bidding : Fixed-Price Contracts Amended by Change Orders or Incentive Contracts ?. French procurement contracts are usually awarded by fixed-price contracts. However, fixed prices can be raised by change orders that occur after the contract is signed. The authors develop a model of this procedure that gives an explanation for low-ball bidding strategies and cost overruns. Then the authors show that this procedure can yield an expected price lower than the optimal linear incentive contract of McAfee and McMillan (1986). [fre] Public Contract Bidding : Fixed-Price Contracts Amended by Change Orders or Incentive Contracts ?. French procurement contracts are usually awarded by fixed-price contracts. However, fixed prices can be raised by change orders that occur after the contract is signed. The authors develop a model of this procedure that gives an explanation for low-ball bidding strategies and cost overruns. Then the authors show that this procedure can yield an expected price lower than the optimal linear incentive contract of McAfee and McMillan (1986).
Year of publication: |
2002
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Authors: | Luchini, Stéphane ; Kast, Robert |
Published in: |
Économie et Prévision. - Programme National Persée, ISSN 0249-4744. - Vol. 156.2002, 5, p. 73-84
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Publisher: |
Programme National Persée |
Saved in:
freely available
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