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This paper investigates a procurement relationship between a welfare-oriented government and a private supplier. The agents face several versions of the trading good which differ in quality and production costs, and the differences between those items are undescribable ex ante. In presence of...
Persistent link: https://www.econbiz.de/10011539057
State-owned enterprises (SOEs) are often vertically integrated firms which operate in key industries like transport, telecommunication and power generation. They provide an infrastructure and invest in its quality. We discuss the effects of liberalization and their privatization which can be...
Persistent link: https://www.econbiz.de/10003871843
This paper develops a simple general equilibrium model which establishes a link between the patience of economic agents and the well-being of nations. We show that firms in long-term oriented countries can mitigate hold-up inefficiencies by engaging with their suppliers in relational contracting...
Persistent link: https://www.econbiz.de/10012923240
This paper develops a simple general equilibrium model which establishes a link between the patience of economic agents and the well-being of nations. We show that firms in long-term oriented countries can mitigate hold-up inefficiencies by engaging with their suppliers in relational contracting...
Persistent link: https://www.econbiz.de/10011810338
In an incomplete contracts model where there are otherwise no social motives for protection, we show that protection is socially beneficial when a buyer outsources customized inputs from a specialized domestic supplier while also purchasing generic inputs from the world market. The reason is...
Persistent link: https://www.econbiz.de/10012723868
We study ex post outsourcing of production in an imperfectly discriminating contest, interpreted here as a research … tournament or a procurement contest for being awarded some production contract. We find that the possibility of outsourcing …, outsourcing reduces the procurement costs of inducing a given level of effort if the contest organizer can collect entry fees …
Persistent link: https://www.econbiz.de/10012780560
This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of … integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price … the three market constellations, both firms produce integrated, both use outsourcing and the firms operate with different …
Persistent link: https://www.econbiz.de/10008796592
Persistent link: https://www.econbiz.de/10008772349
Persistent link: https://www.econbiz.de/10011815547
We study the welfare impact of rules of origin in free trade agreements where final-good producers source customized inputs from suppliers within the trading bloc. We employ a property-rights framework that features hold-up problems in suppliers' decisions to invest, and where underinvestment is...
Persistent link: https://www.econbiz.de/10013362760