Inefficient R&D in Public Procurement: Negative Consequences of a Separation between Award and Actual Contract

In public procur ement a temporal separation between award and actual contract allows private entrepreneurs who did not get the award to sue to become contractor. Hence, not only the award-winning entrepreneur, but also the losers will engage in relationship-specific investments. Unfortunately, in such a situation it is impossible to find fixed prices which guarantee the achievement of both efficient trade and efficient investment.

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Year of publication:	1999
Authors:	Bös, Dieter
Institutions:	CESifo
Subject:	Procurement \| Incomplete Contracts

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Extent:	application/pdf
Series:	CESifo Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 208
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005766024