Discriminatory programs that favor local and small firms in government procurement are common in many countries. This … paper studies the long-run impact of procurement discrimination on market structure and future competition in industries … where learning-by-doing makes incumbent firms more efficient over time. We consider a sequential procurement design problem …

investigate the impact this change in procurement contracts has on efficiency. Focusing on coal mines, we find that those selling …

requires the use of an appropriate incentive contract so as to realign his interests with those of the principal. The parties … of the optimal flexible contract both when the parties have sharp probabilistic beliefs over the possible events in which … risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus a …

an implicit contract is the threat of exclusion: the agent fears that he will lose future income if the principal breaks …