Competition for Procurement Shares

Jose Alcalde and Matthias Dahm

No 11-3, QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory

Abstract: We propose a new procurement procedure which allocates shares of the total amount to be procured depending on the bids of suppliers. Among the properties of the mechanism are: (i) Bidders have an incentive to participate in the procurement procedure, as equilibrium payo s are strictly positive. (ii) The mechanism allows to vary the extent to which armative action objectives, like promoting local industries, are pursued. (iii) Surprisingly, even accomplishing armative action goals, procurement expenditures might be lower than under a classical auction format.

Keywords: Procurement Auction; Armative Action (search for similar items in EconPapers)
JEL-codes: C72 D44 H57 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2011-12-16
New Economics Papers: this item is included in nep-com
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Related works:
Journal Article: Competition for procurement shares (2013)
Working Paper: Competition for procurement shares (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:qmetal:2011_003

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