How Competitive Is “Competitive” Procurement in the Social Services?

How competitive is competitive bidding?

Competitive procurement with corruption

We study competitive procurement administered by a corrupt agent who is willing to manipulate his evaluation of contract proposals in exchange for bribes. With complete information and no corruption, the efficient firm will win the contract for sure. If the agent is corrupt and has large manipulation power, however, bribery makes it costly for the efficient firm to secure a sure win, so in equi...

EQUILIBRIUM FOR PROCUREMENT STRATEGY BETWEEN TRIAD COMPETITIVE SUPPLY CHAINS

In today complex worldwide supply chains, intermediary organizations like Contract manufacturers and GPOs are mostly used. Well-known OEMs delegate their purchasing and procuring to these intermediaries. Because of their positive influence on supply chain efficiency, it is very important to investigate the role of intermediaries in today competitive supply chains. One important question arising...

Competitive Equilibrium Analysis for Repeated Procurement Auctions

In this study, we conduct a competitive equilibrium analysis for the repeated (sequential) procurement auctions. We consider capacitated suppliers (bidders), each with a U-shaped cost function that captures the economies (and dis-economies) of scale in bidding quantity. Cases with both homogenous and non-homogenous bidders are considered in a symmetric incomplete information setting. First we a...

The role of cost modeling in competitive bid procurement

Industrial buyers often create cost models to estimate the costs of potential suppliers and use the information to negotiate an attractive price with suppliers. However, in settings where the buyer wishes to negotiate a contract price by soliciting competitive bids from multiple suppliers, the benefit of cost modeling is not clear since the bidding competition among suppliers can itself reveal ...