The Design of Procurement Contracts.

S-Tier
Journal: American Economic Review
Year: 1986
Volume: 76
Issue: 3
Pages: 378-89

Authors (1)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates the interaction between bidding for procurementprograms and fractional buys. This problem is analyzed from the standpoint of a cost-minimizing procuring agent. It is shown that underimperfect competition, a multiple-source purchase is generally preferred to a single-source contract. Similarly, the author demonstrates that a (strictly) intermediate cost sharing arrangement,i.e., an incentive contract, dominates either the cost-plus or the firm-fixed price arrangements. Copyright 1986 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:76:y:1986:i:3:p:378-89
Journal Field
General
Author Count
1
Added to Database
2026-01-29