Procurement and Predation: Dynamic Sourcing from Financially Constrained Suppliers

This paper studies the interaction between financially constrained and financially strong firms on a procurement market. It characterizes and discusses a procurement agencyâ€™s optimal response when faced with financially asymmetric firms. By considering a dynamic setting, both present and future consequences and incentives are taken into account.

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Year of publication:	2013-10-30
Authors:	Arve, Malin
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Asymmetric information \| Dual sourcing \| Favoritism \| Financial constraints \| Procurement

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Extent:	application/pdf
Series:	Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems.
Type of publication:	Book / Working Paper
Classification:	D82 - Asymmetric and Private Information ; G30 - Corporate Finance and Governance. General ; H57 - Procurement
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011140980