&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement … - but also with more competitive procurement: trust and rents from reduced supplier competition in the procurement process … automotive industry. Consistent with the model's predictions, higher levels of trust are associated with higher investment levels …

auctions or negotiations. To reduce the likelihood of failure, the buyer must motivate the potential suppliers to make a … precontractual investment. Because the noisy signal of the supplier's investment is non-verifiable the buyer can induce the suppliers …

This paper analyzes the design of innovation contests when the quality of an innovation depends on the research … suppliers can choose only between a low bid and a high bid. We then compare the optimal contest to other commonly studied …

This paper analyzes the design of innovation contests when the quality of an innovation depends on the research … suitable contests can induce such variety. The buyer-optimal contest is a bonus tournament, where suppliers can choose only …

This paper analyzes the design of innovation contests when the quality of an innovation depends on the research … value. In our main model with two suppliers, the buyer optimally uses a bonus tournament, where suppliers can choose between … suppliers. We also compare other common contests, in particular, fixed-prize tournaments and auctions. Like bonus tournaments …

When procurement contracts are incomplete, they are frequently changed after the contract is awarded to the lowest …

The literature on public procurement pays great attention to the rules underlying tendering procedures as well as on …