Competitive Procurement and Asset Specificity

CentER Discussion Paper No. 2003-96

50 Pages Posted: 16 Jun 2004

See all articles by Valter Sorana

Valter Sorana

Charles River Associates (CRA)

Date Written: 2003

Abstract

This paper studies the effects of asset specificity on the performance of procurement auctions with subcontracting and asset sales. The analysis highlights the role of several asset features like transfer costs, type of alternative uses and maintenance requirements. It is argued that, if bargaining over subcontracting or asset sales is efficient enough, then the presence of durable specific assets per se does not have decisive effects on the competitive pressure from potential entrants.

Keywords: Competitiveness, transaction costs, franchising, monopoly, regulations, auctions, Markov processes, general equilibrium, asset specificity

Suggested Citation

Sorana, Valter, Competitive Procurement and Asset Specificity (2003). CentER Discussion Paper No. 2003-96, Available at SSRN: https://ssrn.com/abstract=556585 or http://dx.doi.org/10.2139/ssrn.556585

Valter Sorana (Contact Author)

Charles River Associates (CRA) ( email )

1201 F. St. NW
Ste. 700
Washington, DC 20004
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
181
Abstract Views
1,306
Rank
300,534
PlumX Metrics