Procurement and Predation: Dynamic Sourcing from Financially Constrained Suppliers

Arve, Malin (30. October 2013): Procurement and Predation: Dynamic Sourcing from Financially Constrained Suppliers. SFB/TR 15 Discussion Paper No. 441

Abstract

This paper studies the interaction between financially constrained and financially strong firms on a procurement market. It characterizes and discusses a procurement agency’s optimal response when faced with financially asymmetric firms. By considering a dynamic setting, both present and future consequences and incentives are taken into account.

• Item Type: Paper
• Keywords: Asymmetric information, Dual sourcing, Favoritism, Financial constraints, Procurement.
• Faculties: Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems; Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > C6 - Kommunikations- und Transporttechnologien, Industrie- und Regionalstruktur
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: D82, G30, H57
• Language: English