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...

In this paper we argue that government procurement policy played a role in stimulating the wave of innovation that hit the US economy in the 1980's, as well as the simultaneous increase in inequality and in education attainment. Since the early 1980's U.S. policy makers began targeting...

This paper studies the relevance of the different factors that influence, at the territorial level, efficiency in the market for public infrastructures in Italy.

Public purchasing authorities are in a leading position for the introduction, promotion and development of green procurement. Indeed, the public sector can influence green procurement both by designing suitable policies and by driving “green” markets through the significant share of public...

We consider a monopolistic firm producing a good while polluting and using a fossil energy. This firm can adopt a clean technology by incurring an investment cost decreasing exponentially with the adoption date. This clean technology does not pollute and has a lower production cost because it...

We provide a comparison of bidding behavior between multi-round and single-round auctions considering bid lettings for asphalt construction contracts. Using a reduced-form difference-in-difference approach as well as the nonparametric estimation technique proposed by Racine and Li (2004) we find...

Governments are known to prefer domestic over foreign suppliers in the award of procurement contracts despite cost and quality considerations. Literature exploring this “home-bias” in public purchases has exclusively focused on the microeconomic interplay between the tendering entity and the...

This paper studies the government procurement of services from foreign suppliers by conducting a statistical analysis of data submitted by Japan and Switzerland to the WTO's Committee on Government Procurement. Using several metrics, the paper examines whether the WTO’s Agreement on Government...

This paper examines the potential costs a country faces when it fails to develop domestic arms manufacturing. I examine these costs using the historical example of Canada's decision to not develop domestic naval shipbuilding capacity prior to World War II. Canada's primary naval responsibility...

For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex post. We show that this is achieved by bilateral negotiations but not by auctions. Negotiations strictly outperforms auctions if sellers are likely to have superior information...