I study the interaction between optimal procurement and outsourcing of production in small industries. First, two …. Then the buyer designs the procurement mechanism and sellers who outsourced production subcontract with their respective …

For a repeated procurement problem, we compare two stylized negotiating cultures which differ in how the buyer uses an … entrant to exert pressure on the incumbent resembling U.S. style and Japanese style procurement. In each period, the suppliers … are privately informed about their production cost, but only the incumbent can influence the buyer s procurement mechanism …

We consider a multi-dimensional procurement problem in which sellers have private information about their costs and … Bayesian procurement mechanism that implements the efficient allocation under the constraint that sellers are protected by …

-binding price requests. Using a laboratory experiment, we examine how competition moderates the way such cheap-talk communication … granularity effects of cheap-talk communication on negotiation outcomes. Our results show that most of these effects survive with …

In government procurement auctions of construction contracts, entrants are typically less informed and bid more … encourage entry in government procurement auctions and thus increase competition …

, we propose a new empirical method that allows us to predict the expected procurement cost at any reserve price. Being … find that bidders are highly risk-averse and choosing non-binding reserve prices would minimize procurement costs, whereas …

mirrors real construction procurement auctions, our laboratory experiment tests the impact of the precision of a bidder’s cost …As procurement auctions increasingly move to digital platforms, more data and information is available (or can be made … reduced uncertainty may not help – raises important questions about the degree of transparency that is optimal in procurement …

elicited data. As an illustration, the methodology is applied to a double auction experiment, where traders' beliefs about the …