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A great body of knowledge exists on the theory of auctions and competitive bidding that is of potential relevance to … construction contract tendering. Most of this, however, contains assumptions – such as perfect information – that are unlikely to … assumptions in the construction tendering context. In particular, the effects of additive and multiplicative (scalar) mark-ups in …
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difficult than tendering e.g. a monopoly franchise. A first reason is that the cost assessment is more complex in the former … case as future competitive market outcomes have to be anticipated; in the case of franchise bidding, at least the number of … service provision. Compared to direct designation of universal services with ex post compensation, tendering causes a series …
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The issue of maintaining competition over time in a repeated procurement setting is important for both government and private sector buyers. The U.S. Department of Defense has experimented with splitting production quantities between two or more contractors in an effort to make government...
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Allotment and subcontracting are the two alternative mechanisms enabling the participation of SMEs in procurement. We compare these two alternatives in the context of a procurement contract awarded by a first-price sealed-bid auction. When the winning large firm is constrained with respect to...
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