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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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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 …
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