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A buyer engages a procurement service provider (PSP) to short-list pre-screened suppliers for final selection. The PSP can exert costly effort to include promising candidates that have a higher probability to be deemed qualified by the buyer. The buyer optimizes two key decision variables in her...
Persistent link: https://www.econbiz.de/10012856463
We consider sealed and open-bid total-cost procurement auctions where two attributes are used for contract award decisions: price, which is bid by the supplier; and a fixed quality adjustment cost, which is included by the buyer to capture non-price factors such as a supplier's quality and...
Persistent link: https://www.econbiz.de/10014026580
A buyer seeking to outsource production may be able to find ways to reduce a potential supplier's cost, e.g., by suggesting improvements to the supplier's proposed production methods. We study how a buyer could use such "cost reduction investigations" by proposing a three-step supplier selection...
Persistent link: https://www.econbiz.de/10012842560
Persistent link: https://www.econbiz.de/10014307627