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In procurement markets, unverifiable quality provision may be obtained either by direct negotiation or by competitive processes which discriminate firms on the basis of their past performance. However, discrimination is not allowed in many institutional contexts. We show that a...
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In many circumstances, procurement contracts entail crucial unverifiable dimensions. In a repeated procurement auction framework, we show that by strategically using the reserve price, a buyer is able to elicit the provision of unverifiable quality. Thus the buyer need not resort to any...
Persistent link: https://www.econbiz.de/10012945087
We consider multiple-principal multiple-agent games of incomplete information. In this context, we identify a class of direct and incentive compatible mechanisms: each principal privately recommends to each agent to reveal her private information to the other principals, and each agent behaves...
Persistent link: https://www.econbiz.de/10009150955