We study optimal procurement mechanisms for a financially constrained buyer subject to ex post incentive compatibility and individual rationality. In our setup, a buyer who has a fixed budget wishes to purchase a homogeneous product up to a maximum demand amount. We characterize the optimal mechanism when the budget constraint always binds and when the maximum demand constraint always binds. Wh...

introduction: the purpose of this study was to examine the possibility of implementing operating budgeting in shiraz municipality. method: the population of this study was consisted of four groups of individuals who were aware of the various phases of budgeting in shiraz municipality including: (1) senior managers and administrative and financial assistants, (2) financial managers along with ac...

How do consumers adjust their spending when their budget changes? A common view is that the allocation of one’s current budget should not depend on previous budget allocations. Contrary to this, the authors find that when the budget contracts to a particular level, consumers select less variety (as measured by the number of different items with some of the budget allocated to them) than when th...