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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 …
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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. …
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experiment to study the effect of a seller precommitment mechanism: Sellers have an option to commit by providing a rebate to … feedback scheme, we find that the seller's rebate decision has a significant impact on the buyer's purchasing decision via … the probability that sellers will provide a rebate. Compared with the no rebate mechanism market, more efficient trades …
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The paper studies procurement contracts with pre-project investigations in the presence of adverse selection and moral …
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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 …
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