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This paper studies the interaction between financially constrained and financially strong firms on a procurement market. It characterizes and discusses a procurement agency's optimal response when faced with financially asymmetric firms. By considering a dynamic setting, both present and future...
Persistent link: https://www.econbiz.de/10010200427
We analyze the problem of a buyer who purchases a long-term project from one of several suppliers. A changing state of the world influences the costs of the suppliers. Complete contracts conditioning on all future realizations of the state are infeasible. We show that contractual incompleteness...
Persistent link: https://www.econbiz.de/10012105726
Market share contracts, a form of loyalty discounts, where the discount is contingent on the buyer meeting or exceeding a target share of total procurement, are common in many B2B settings. We study the impact of such contracts on demand allocation, prices, and welfare in a setting where a...
Persistent link: https://www.econbiz.de/10012848153
We analyze self- and joint procurement of countries with heterogeneous demand for a good offered by a price discriminating monopolist. We find that not only countries with low but also with high demand can benefit from committing to jointly procure equal quantities at a uniform price, even if...
Persistent link: https://www.econbiz.de/10013489745
Procurement control (PC) is a practice that the buyer controls the material procurement of the supplier and at the same time takes the inventory risk from the supplier. In this paper we compare PC with a decentralized contracting practice (DC) in the setting of a risk-neutral buyer cooperating...
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quantitative Ausmaß innovationsorientierter Beschaffung in Deutschland liefern und Ländervergleiche (insbesondere mit den USA … der Europäischen Union und in Deutschland dargestellt und kritisch diskutiert. …In modern growth theory, innovation has been acknowledged to be the engine of economic growth and prosperity. However …
Persistent link: https://www.econbiz.de/10011744091
We compare two commonly used mechanisms in procurement: auctions and negotiations. The execution of the procurement mechanism is delegated to an agent of the buyer. The agent has private information about the buyer's preferences and may collude with one of the sellers. We provide a precise...
Persistent link: https://www.econbiz.de/10009689581