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Procurement auctions are sometimes plagued with a chosen supplier's failing to accomplish a project successfully. The risk of project failure is considerable, especially when the buyer has inadequate information about suppliers ex ante and the project can only be evaluated at the end. To manage...
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completion time, and the A+B contract design is not ex post efficient. Using data from highway procurement contracts in … California, we show through a counterfactual analysis that an ex post efficient lane rental contract would reduce the social cost …
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manufacturer who sources a key component using different procurement options: a long-term order on a price-only contract, short …-term orders on an adjustment contract, and short-term purchases directly from the market. At the beginning of the planning cycle …
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