A procurement approach commonly used for construction projects involves paying a fixed price per unit conducted - that is, unit price contracts. We develop an analytical model to study the optimal procurement quantity and monitoring intensity when the required quantities are uncertain. The...

A common approach for procuring large construction projects is through Unit Price Contracts. By the means of a simple model, we study the optimal quantity to procure under uncertainty regarding the actual required quantity given that the procurer strives to minimize expected total costs. The...

A procurement approach commonly used for construction projects involves paying a fixed price per unit conducted, i.e., unit price contracts. We develop an analytical model to study the optimal procurement quantity and monitoring intensity when the required quantities are uncertain. The optimum...

We argue that banks operating in a local market possess better information about the local housing market than do non-local banks. Possessing this information may influence their willingness to grant loans to house buyers and the specifics of the loan terms, which in turn may affect house prices...

Shifting transportation to electrified modes, e.g., rail, is a politically attractive way of reducing greenhouse gas (GHG) emissions from the transportation sector. There is a vivid debate about the effects such a shift has on GHG emission and how these should be assessed and appraised. We argue...

The impact of policy instruments supposed to reduce greenhouse gas emissions from road freight transports may seem smaller than expected. Using insights from economics and contract theory, the paper sorts out the (possible) instances of market failure in the freight transport market; operator...

Kista is one of the largest workingarea in Sweden. It has a history of approximately 30 years. During this period the area has expand very much and has today an officespace of approximately 1 000 000 square meters. The area has had four periods of expansion, a slow expansion in the late 70’s...

Many infrastructural projects have cost overruns and there has been a lot of research both on why these cost overruns occur and what can be done to reduce cost overruns. Bent Flyvbjerg is the leading researcher in the area and in this article his proposals are also the starting point. Beside a...

The first part of the article presents a new framework for analyzing cost overruns. It has a descriptive part in two dimensions: when during the process that the cost overrun arose and what part of the cost function was responsible (change in the product, change in quantities of the inputs and...

This article adds to the theoretical base of unbalanced bidding in auction theory. The importance of this concept is justified by being a decisive feature in the make-or-buy decision of a client who cannot rely on repeated interaction, often the case in public procurement, for example. Earlier...