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For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex … auctions if sellers are likely to have superior information about possible design improvements, if renegotiation is costly, and …
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For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex … auctions if sellers are likely to have superior information about possible design improvements, if renegotiation is costly, and …
Persistent link: https://www.econbiz.de/10010496962
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inefficiencies: inefficient renegotiation, inefficient production and inefficient design. We derive the welfare optimal direct …
Persistent link: https://www.econbiz.de/10011762526
are more pronounced for a fancy than a standard design, it is optimal to fix the standard design ex ante. If renegotiation …
Persistent link: https://www.econbiz.de/10011762813
Cost overrun is ubiquitous in public procurement. We argue that this can be the result of a constraint optimal award procedure when the procurer cannot commit not to renegotiate. If cost differences are more pronounced for more complex designs, it is optimal to fix a simple design ex ante and to...
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