EconPapers    
Economics at your fingertips  
 

Small business participation procurement policy: Subcontracting vs Allotment

François Maréchal and Pierre-Henri Morand ()

Recherches économiques de Louvain, 2012, vol. 78, issue 2, 5-23

Abstract: Allotment and subcontracting are the two procedures enabling small businesses to participate in procurement. We compare these two procedures in the context of a procurement contract awarded by a first-price sealed-bid auction. We assume that the public buyer wishes to fulfil two different goals: to minimize expected costs of the contract for the public buyer and to maximize small businesses? profit. We show that, under specific cost-technology conditions we determine, the allotment procedure not only enables extensive participation by small businesses but also can achieve the goal of minimizing expected total costs for the public buyer. JEL classification: D44; L51.

Keywords: small business; auction; procurement (search for similar items in EconPapers)
JEL-codes: L51 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=REL_782_0005 (application/pdf)
http://www.cairn.info/revue-recherches-economiques-de-louvain-2012-2-page-5.htm (text/html)
free

Related works:
Working Paper: Small business participation procurement policy: Subcontracting vs Allotment (2012) Downloads
Working Paper: Small business participation procurement policy: Subcontracting vs allotment (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:reldbu:rel_782_0005

Access Statistics for this article

More articles in Recherches économiques de Louvain from De Boeck Université
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().

 
Page updated 2025-03-19
Handle: RePEc:cai:reldbu:rel_782_0005