How to subcontract?
Firms compete for a contract and subcontract part of the work. If subcontracting takes place before the award of the contract, the revenue equivalence result breaks down, as subcontractors anticipate that their bids influence the probability of the firm winning the contract. Properties of the optimal subcontracting mechanism are discussed.
Year of publication: |
2009
|
---|---|
Authors: | Wambach, Achim |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 105.2009, 2, p. 152-155
|
Publisher: |
Elsevier |
Keywords: | Auction Procurement Bidding Subcontracting Revenue equivalence |
Saved in:
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