I study the interaction between optimal procurement and outsourcing of production in small industries. First, two …. Then the buyer designs the procurement mechanism and sellers who outsourced production subcontract with their respective …

For a repeated procurement problem, we compare two stylized negotiating cultures which differ in how the buyer uses an … entrant to exert pressure on the incumbent resembling U.S. style and Japanese style procurement. In each period, the suppliers … are privately informed about their production cost, but only the incumbent can influence the buyer s procurement mechanism …

We consider a multi-dimensional procurement problem in which sellers have private information about their costs and … Bayesian procurement mechanism that implements the efficient allocation under the constraint that sellers are protected by …

Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient … allocation rules that award the project to a less efficient firm with positive probability. Procurement projects often involve ex … post moral hazard after the competitive process is over. A procurement mechanism must combine an incentive scheme with the …

Adverse selection in procurement arises when low-cost bidders are also lowquality suppliers. We propose a mechanism …. We perform a counterfactual experiment on Italian government procurement auctions: we compute the gain that the … procurement mechanism. …