The vertical organization of production entails a range of make-or-buy decisions of intermediate goods that are influenced by the difficulty of writing contracts with a potential supplier. When contracting causes high transaction costs, a firm can decide to vertically integrate the production of...

The choice of contract allocation mechanism in procurement affects such aspects of transactions as information exchange between buyer and supplier, supplier competition, pricing and, eventually, performance. In this study we investigate the buyer’s choice between reverse auctions and...

Online markets have dramatically decreased costs of search and communication for buyers. By contrast, costs of evaluating purchasing alternatives have become critical due to an overwhelming range of available options. When high, evaluation costs can offset potential gains from transactions and...

Finn Wynstra is professor by special appointment in Purchasing and Supply Management at RSM Erasmus University, on behalf of the Dutch Association for Purchasing Management (NEVI) and the 'Vereniging Trustfonds EUR'. He studied Economics at Erasmus University Rotterdam, and conducted his PhD...