Exhaustive risk allocation cannot be achieved through contract conditions, because all risk items cannot be foreseen at the planning stage. Effective management of unforeseen risks/events at post-contract stage needs the collective efforts of all major contracting parties. The attitude and...

We examine the relative performances of reverse auctions and request for quotes in a simple commodity environment. Enterprises embarking on a reverse auction initiative often start with their commodity purchases. We conduct laboratory experiments and find that this is a poor starting point. Both...