Favoritism, anonimity and renegotiation in procurement
- Autores
- Weinschelbaum, Federico; Arozamena, Leandro; Ganuza, Juan Jose
- Año de publicación
- 2018
- Idioma
- inglés
- Tipo de recurso
- documento de conferencia
- Estado
- versión publicada
- Descripción
- This paper shed2 light on a mechanism for implementing favoritism even in a symmetric framework. We analyze a procurement setting in which the optimal design of the project is unknown. The sponsor has to invest in specifying the project. The larger the investment, the higher the probability that the initial design is optimal. Otherwise, a bargaining process between the winning firm and the sponsor takes place. The bargaining benefits of the winning firm are larger when this is the favored firm. Given this comparative advantage, the favored firm bids more aggressively and then, it wins more often than standard firms. We show that the sponsor invests less in specifying the initial design when favoritism is stronger. Underinvestment in design specification is a tool for giving a comparative advantage to the favored firm.
Facultad de Ciencias Económicas - Materia
-
Ciencias Económicas
Auctions
Favoritism
Auction Design
Renegotiation - Nivel de accesibilidad
- acceso abierto
- Condiciones de uso
- http://creativecommons.org/licenses/by-nc-sa/4.0/
- Repositorio
- Institución
- Universidad Nacional de La Plata
- OAI Identificador
- oai:sedici.unlp.edu.ar:10915/169186
Ver los metadatos del registro completo
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Favoritism, anonimity and renegotiation in procurementWeinschelbaum, FedericoArozamena, LeandroGanuza, Juan JoseCiencias EconómicasAuctionsFavoritismAuction DesignRenegotiationThis paper shed2 light on a mechanism for implementing favoritism even in a symmetric framework. We analyze a procurement setting in which the optimal design of the project is unknown. The sponsor has to invest in specifying the project. The larger the investment, the higher the probability that the initial design is optimal. Otherwise, a bargaining process between the winning firm and the sponsor takes place. The bargaining benefits of the winning firm are larger when this is the favored firm. Given this comparative advantage, the favored firm bids more aggressively and then, it wins more often than standard firms. We show that the sponsor invests less in specifying the initial design when favoritism is stronger. Underinvestment in design specification is a tool for giving a comparative advantage to the favored firm.Facultad de Ciencias Económicas2018-11info:eu-repo/semantics/conferenceObjectinfo:eu-repo/semantics/publishedVersionObjeto de conferenciahttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/169186enginfo:eu-repo/semantics/altIdentifier/isbn/978-987-28590-6-0info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2018/weinschelbaum.pdfinfo:eu-repo/semantics/altIdentifier/issn/1852-0022info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-sa/4.0/Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:43:26Zoai:sedici.unlp.edu.ar:10915/169186Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:43:27.135SEDICI (UNLP) - Universidad Nacional de La Platafalse |
dc.title.none.fl_str_mv |
Favoritism, anonimity and renegotiation in procurement |
title |
Favoritism, anonimity and renegotiation in procurement |
spellingShingle |
Favoritism, anonimity and renegotiation in procurement Weinschelbaum, Federico Ciencias Económicas Auctions Favoritism Auction Design Renegotiation |
title_short |
Favoritism, anonimity and renegotiation in procurement |
title_full |
Favoritism, anonimity and renegotiation in procurement |
title_fullStr |
Favoritism, anonimity and renegotiation in procurement |
title_full_unstemmed |
Favoritism, anonimity and renegotiation in procurement |
title_sort |
Favoritism, anonimity and renegotiation in procurement |
dc.creator.none.fl_str_mv |
Weinschelbaum, Federico Arozamena, Leandro Ganuza, Juan Jose |
author |
Weinschelbaum, Federico |
author_facet |
Weinschelbaum, Federico Arozamena, Leandro Ganuza, Juan Jose |
author_role |
author |
author2 |
Arozamena, Leandro Ganuza, Juan Jose |
author2_role |
author author |
dc.subject.none.fl_str_mv |
Ciencias Económicas Auctions Favoritism Auction Design Renegotiation |
topic |
Ciencias Económicas Auctions Favoritism Auction Design Renegotiation |
dc.description.none.fl_txt_mv |
This paper shed2 light on a mechanism for implementing favoritism even in a symmetric framework. We analyze a procurement setting in which the optimal design of the project is unknown. The sponsor has to invest in specifying the project. The larger the investment, the higher the probability that the initial design is optimal. Otherwise, a bargaining process between the winning firm and the sponsor takes place. The bargaining benefits of the winning firm are larger when this is the favored firm. Given this comparative advantage, the favored firm bids more aggressively and then, it wins more often than standard firms. We show that the sponsor invests less in specifying the initial design when favoritism is stronger. Underinvestment in design specification is a tool for giving a comparative advantage to the favored firm. Facultad de Ciencias Económicas |
description |
This paper shed2 light on a mechanism for implementing favoritism even in a symmetric framework. We analyze a procurement setting in which the optimal design of the project is unknown. The sponsor has to invest in specifying the project. The larger the investment, the higher the probability that the initial design is optimal. Otherwise, a bargaining process between the winning firm and the sponsor takes place. The bargaining benefits of the winning firm are larger when this is the favored firm. Given this comparative advantage, the favored firm bids more aggressively and then, it wins more often than standard firms. We show that the sponsor invests less in specifying the initial design when favoritism is stronger. Underinvestment in design specification is a tool for giving a comparative advantage to the favored firm. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-11 |
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info:eu-repo/semantics/conferenceObject info:eu-repo/semantics/publishedVersion Objeto de conferencia http://purl.org/coar/resource_type/c_5794 info:ar-repo/semantics/documentoDeConferencia |
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http://sedici.unlp.edu.ar/handle/10915/169186 |
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eng |
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eng |
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info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) |
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http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) |
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