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Commitment in Procurement Contracting.

Limited commitment causes inefficient production and source selecti on in a multistage procurement process wherein the contractor has privat e information about uncertain costs. A contractor's limited liability l eads a monopsonist to rely more on quantity distortions to extract rents. Moreover, sequential contracting makes it difficult for the buyer to identify the most efficient supplier. Copyright 1988 by The editors of the Scandinavian Journal of Economics.
Year of publication:
1988
Authors: Riordan, Michael H ; Sappington, David E M
Published in:
Scandinavian Journal of Economics. - Wiley Blackwell, ISSN 1467-9442. - Vol. 90.1988, 3, p. 357-72
Publisher: Wiley Blackwell
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10005666079
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