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The paper studies a generic bilateral trade model with relationship-specific investments. Only the seller invests, and subsequent trade becomes inefficient if his investments are too low. We show that the seller may defect strategically under a fixed-price contract even though he attains any...
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For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex … use of negotiations as a procurement mechanism in private industry. …
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We analyze the problem of a buyer who purchases a long-term project from one of several suppliers. A changing state of the world influences the costs of the suppliers. Complete contracts conditioning on all future realizations of the state are infeasible. We show that contractual incompleteness...
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government procurement, held at the OECD in June 1998. The publication includes submissions from 12 OECD member countries … describing the regulatory regime for procurement and the competition policy issues which have arisen. The document also includes … a background paper prepared by the OECD secretariat discussing why competition issues arise in procurement, raising the …
Persistent link: https://www.econbiz.de/10014181884
We consider sealed and open-bid total-cost procurement auctions where two attributes are used for contract award … seeks to minimize her total (price and quality adjustment) procurement cost, can choose to announce the quality adjustment … additive as well as multiplicative total cost functions. The results suggest that procurement managers can use their …
Persistent link: https://www.econbiz.de/10014026580
procurement, as a means to stimulate innovation.Design/methodology/approach: By applying a post … procurement of innovation policies. The case study findings suggest that few of the challenges innovating SME's are facing would … be ameliorated by developing public procurement of innovation policies specifically targeting SME promotion. Research …
Persistent link: https://www.econbiz.de/10012924079
This paper studies the interaction between financially constrained and financially strong firms on a procurement market …. It characterizes and discusses a procurement agency's optimal response when faced with financially asymmetric firms. By …
Persistent link: https://www.econbiz.de/10010200427