Topic
Procurement
About: Procurement is a research topic. Over the lifetime, 25669 publications have been published within this topic receiving 334145 citations.
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TL;DR: In this paper, the authors study procurement contracts with pre-project investigations in the presence of adverse selection and moral hazard, and propose an optimal mechanism for information acquisition and truthful information revelation.
Abstract: The paper studies procurement contracts with pre-project investigations in the presence of adverse selection and moral hazard. To model the procurer's problem, we extend a standard sequential screening model to endogenous information acquisition with moral hazard. The optimal contract displays system atic distortions in information acquisition. Due to a rent effect, adverse selection induces too much infor mation acquisition to prevent cost overruns and too little information acquisition to prevent false project cancellations. Moral hazard mitigates the distortions related to cost overruns yet exacerbates those related to false negatives. The optimal mechanism is a menu of option contracts that achieves the dual goal of providing incentives for information acquisition and truthful information revelation.
74 citations
TL;DR: The procurement practices and policies set forth by EPY and the first measurable outcomes, in terms of cost savings, resulting from these policies are presented are presented.
74 citations
TL;DR: In this paper, a survey of 210 households was conducted to examine consumer disposing of second-hand goods by examining consumer disposal behavior, and a hierarchical cluster analysis using the Jaccard coefficient was performed to distinguish households in terms of goods discarded and channels used.
73 citations
TL;DR: In this article, a technique based on Information Gap Decision Theory (IGDT) is proposed to assess different procurement strategies for large consumers. But the proposed method does not minimize the procurement cost but assesses the risk aversion or risk-taking nature of some procurement strategies with regard to the minimum cost.
73 citations
TL;DR: In this article, the authors propose a multidimensional screening problem in the private information held by the innovator: research cost, quality and market size of the innovation, and solve it by trading off the exante screening benefit and the ex-post distortion.
Abstract: What is the best way to reward innovation? While prizes avoid deadweight loss, intellectual property selects high social surplus projects. Optimal innovation policy thus trades off the ex-ante screening benefit and the ex-post distortion. It solves a multidimensional screening problem in the private information held by the innovator: research cost, quality and market size of the innovation. The appropriate degree of market power is never full monopoly pricing and is determined by measurable market characteristics, the inequality and elasticity of innovation supply, making the analysis open to empirical calibration. The framework has applications beyond IP policy to the optimal pricing of platforms or the optimal procurement of public infrastructure.
73 citations