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Heterogeneity-promoting optimal procurement
Ganuza, Juan J.; Pechlivanos, Lambros
Universitat Pompeu Fabra. Departament d'Economia i Empresa
When procurement takes place in the presence of horizontally differentiated contractors, the design of the object being procured affects the resulting degree of competition. This paper highlights the interaction between theoptimal procurement mechanism and the design choice. Contrary to conventional wisdom, the sponsor's design choice, instead of homogenizingthe market to generate competition, promotes heterogeneity.
2005-09-15
Microeconomics
procurement
project design
horizontal differentiation
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http://creativecommons.org/licenses/by-nc-nd/3.0/es/
Working Paper
         

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