Porque favorecer firmas nacionais?

Flavio Menezes and Paulo Monteiro

No 377, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: In this paper we offer a rationale for the existence of preferences for domestic…rms in government procurement. When the domestic…rm’s probability of completion of a government contract is larger than the foreign …rms probability of completion, the government should favor domestic…rms in order to maximize the expected net bene…tof the project. We compute the…rms’ equilibrium strategies for a lowest offer procurement auction. We also compute numerically the level of preferences that maximizes the government’s net expected bene…t under different parameter values.

Date: 2000-04-06
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Journal Article: Por Que Favorecer Firmas Nacionais? (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgewp:377

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