Files

Abstract

This paper examines the procurement problem of a buyer who wishes to procure an object from a given number of firms under conditions of asymmetric information about firms' cost. Optimal fixed and variable quantity procurements are analyzed and implementation issues discussed. It is shown that the optimal mechanism can be implemented by auction in which a payment schedule is announced by the buyer, and the firm bidding the largest output wins the contract.

Details

PDF

Statistics

from
to
Export
Download Full History