Should we base procurement rules on the competition of linear incentive contracts ?

Details

Serval ID
serval:BIB_49FCA2A582B1
Type
Report: a report published by a school or other institution, usually numbered within a series.
Publication sub-type
Working paper: Working papers contain results presented by the author. Working papers aim to stimulate discussions between scientists with interested parties, they can also be the basis to publish articles in specialized journals
Collection
Publications
Institution
Title
Should we base procurement rules on the competition of linear incentive contracts ?
Author(s)
Maréchal François
Publisher
Ecole des HEC/DEEP
Institution details
Ecole HEC-DEEP
Address
Lausanne
Issued date
2003
Number
03.07
Genre
Cahiers de recherches économiques
Language
english
Number of pages
14
Abstract
The study of optimal procurement contracts under informational asymmetries generally assumes that the cost disturbance affecting contractor's cost function is not observed by the principal. We assume here that this variable (which may represent environmental or geology conditions...) can be observed in the process of the contract. Thus, the principal is now able to make the payment contingent on the realization of this variable. In this context, the aim of this paper is to compare a linear incentive contract with a "modified" fixed-price contract, which allows the payment to the selected contractor to be independent upon his bid in the case of a high-cost value of exogenous uncertainty.
Keywords
Economics
Create date
14/03/2008 11:21
Last modification date
20/08/2019 14:57
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