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Business groups in emerging markets : financial control and sequential investment

Hainz, Christa - 2006

Business groups in emerging markets perform better than unaffiliated firms. One explanation is that business groups substitute some functions of missing institutions, for example, enforcing contracts. We investigate this by setting up a model where firms within the business group are connected...

Persistent link: https://www.econbiz.de/10010365879

Subsidies, knapsack auctions and Dantzig’s greedy heuristic

Ensthaler, Ludwig; Giebe, Thomas - 2009

A budget-constrained buyer wants to purchase items from a shortlisted set. Items are differentiated by quality and sellers have private reserve prices for their items. Sellers quote prices strategically, inducing a knapsack game. The buyer's problem is to select a subset of maximal quality. We...

Persistent link: https://www.econbiz.de/10003848830

Prizes and lemons : procurement of innovation under imperfect commitment

Ding, Weili; Wolfstetter, Elmar - 2009

The literature on R&D contests implicitly assumes that contestants submit their innovation regardless of its value. This ignores a potential adverse selection problem. The present paper analyzes the procurement of innovations when the procurer cannot commit to never bargain with innovators who...

Persistent link: https://www.econbiz.de/10003848872

Optimal procurement contracts with pre-project planning

Krähmer, Daniel; Strausz, Roland - 2010

hazard. To model the procurer's roblem, we extend a standard sequential screening model to endogenous information acquisition … with moral hazard. The optimal contract displays systematic distortions in information acquisition. Due to a rent effect …, adverse selection induces too much information acquisition to prevent cost overruns and too little information acquisition to …

Persistent link: https://www.econbiz.de/10003935679

Innovation contests with entry auction

Giebe, Thomas - 2010

We consider procurement of an innovation from heterogeneous sellers. Innovations are random but depend on unobservable effort and private information. We compare two procurement mechanisms where potential sellers first bid in an auction for admission to an innovation contest. After the contest,...

Persistent link: https://www.econbiz.de/10003935696

A dynamic auction for multiobject procurement under a hard budget constraint

Ensthaler, Ludwig; Giebe, Thomas - 2010

Persistent link: https://www.econbiz.de/10003950454

Optimal use of rewards as commitment device when bidding is costly

Hu, Luke - 2012

This paper considers procurement auctions with costly bidding when the auctioneer is unable to commit himself to restrict the number of bidders. The auctioneer can, however, offer a financial reward to be paid to every short-listed bidders as an indirect commitment device. Rewards for...

Persistent link: https://www.econbiz.de/10009571029

Transparency in buyer-determined auctions : should quality be private or public?

Stoll, Sebastian; Zoettl, Gregor - 2014

We study non-binding procurement auctions where both price and non-price characteristics of bidders matter for being awarded a contract. The outcome of such auctions critically depends on how information is distributed among bidders during the bidding process. As we show theoretically, whether...

Persistent link: https://www.econbiz.de/10010358744

Procurement with costly bidding, optimal shortlisting, and rebates

Fan, Cuihong; Wolfstetter, Elmar - 2006

We consider the procurement of a complex, indivisible good when bid preparation is costly, assuming a population of heterogeneous contractors. Shortlisting is introduced to implement the optimal number of bidders, and we explore whether the procurer should reimburse the nonrecoverable cost of...

Persistent link: https://www.econbiz.de/10010383043

Merger efficiency and managerial incentives

Kräkel, Matthias; Müller, Daniel - 2013

information about suitable merger targets and to manage the merged corporation in case of an acquisition. Our results show that …

Persistent link: https://www.econbiz.de/10010198514