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Limiting Buyer Discretion: Effects on Performance and Price in Long-Term Contracts

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  • Lisa J. Cameron

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  • Lisa J. Cameron, 2000. "Limiting Buyer Discretion: Effects on Performance and Price in Long-Term Contracts," American Economic Review, American Economic Association, vol. 90(1), pages 265-281, March.
    • Handle: RePEc:aea:aecrev:v:90:y:2000:i:1:p:265-281
    Note: DOI: 10.1257/aer.90.1.265
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    References listed on IDEAS

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    1. Joskow, Paul L, 1988. "Price Adjustment in Long-term Contracts: The Case of Coal," Journal of Law and Economics, University of Chicago Press, vol. 31(1), pages 47-83, April.
    2. Bond, Eric W, 1982. "A Direct Test of the "Lemons" Model: The Market for Used Pickup Trucks," American Economic Review, American Economic Association, vol. 72(4), pages 836-840, September.
    3. Steve Kelman, 1990. "Procurement and Public Management," Books, American Enterprise Institute, number 53122, September.
    4. Masten, Scott E, 1988. "Minimum Bill Contracts: Theory and Policy," Journal of Industrial Economics, Wiley Blackwell, vol. 37(1), pages 85-97, September.
    5. Robert C. Marshall & Michael J. Meurer & Jean-Francois Richard, 1994. "Curbing Agency Problems in the Procurement Process by Protest Oversight," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 297-318, Summer.
    6. Laffont, Jean-Jacques & Tirole, Jean, 1991. "Auction design and favoritism," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 9-42, March.
    7. William P. Rogerson, 1994. "Economic Incentives and the Defense Procurement Process," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 65-90, Fall.
    8. Orley Ashenfelter & David Ashmore & Randall Filer, 1997. "Contract Form and Procurement Costs: The Impact of Compulsory Multiple Contractor Laws in Construction," NBER Working Papers 5916, National Bureau of Economic Research, Inc.
    9. Victor P. Goldberg, 1977. "Competitive Bidding and the Production of Precontract Information," Bell Journal of Economics, The RAND Corporation, vol. 8(1), pages 250-261, Spring.
    10. Masten, Scott E & Crocker, Keith J, 1985. "Efficient Adaptation in Long-term Contracts: Take-or-Pay Provisions for Natural Gas," American Economic Review, American Economic Association, vol. 75(5), pages 1083-1093, December.
    11. Greenstein, Shane, 1993. "Procedural Rules and Procurement Regulations: Complexity Creates Trade-offs," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 9(1), pages 159-180, April.
    12. Spulber, Daniel F, 1990. "Auctions and Contract Enforcement," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 6(2), pages 325-344, Fall.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Decarolis, Francesco & Palumbo, Giuliana, 2015. "Renegotiation of public contracts: An empirical analysis," Economics Letters, Elsevier, vol. 132(C), pages 77-81.
    2. Jorge González Chapela & José M. Labeaga & Luis A. Medrano, 2019. "Further econometric evidence on the extent and sources of cost savings in competitively tendered contracts," Empirical Economics, Springer, vol. 56(2), pages 679-701, February.
    3. Ari Hyytinen & Sofia Lundberg & Otto Toivanen, 2018. "Design of public procurement auctions: evidence from cleaning contracts," RAND Journal of Economics, RAND Corporation, vol. 49(2), pages 398-426, June.
    4. Stefano Galavotti & Luigi Moretti & Paola Valbonesi, 2018. "Sophisticated Bidders in Beauty-Contest Auctions," American Economic Journal: Microeconomics, American Economic Association, vol. 10(4), pages 1-26, November.
    5. Klara Granheimer & Per-Erik Eriksson & Tina Karrbom Gustavsson, 2022. "Adaptability in Public Procurement of Engineering Services Promoting Carbon Reduction: An Organizational Control Perspective," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    6. Murali Jagannathan & Venkata Santosh Kumar Delhi, 2020. "Perceptions of Stakeholders on the ‘Redraftability’ of Construction Contracts," IIM Kozhikode Society & Management Review, , vol. 9(2), pages 152-161, July.
    7. Francesco Corielli & Stefano Gatti & Alessandro Steffanoni, 2010. "Risk Shifting through Nonfinancial Contracts: Effects on Loan Spreads and Capital Structure of Project Finance Deals," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(7), pages 1295-1320, October.
    8. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2009. "Public-Private Partnerships: when and how," Documentos de Trabajo 257, Centro de Economía Aplicada, Universidad de Chile.
    9. Koning, Pierre & van de Meerendonk, Arthur, 2014. "The impact of scoring weights on price and quality outcomes: An application to the procurement of Welfare-to-Work contracts," European Economic Review, Elsevier, vol. 71(C), pages 1-14.
    10. Riccardo Camboni Marchi Adani, 2018. "Procuring price and quality using scoring auctions: where do we stand?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 17-36, March.
    11. Andrea Bafundi & Riccardo Camboni & Edoardo Grillo & Paola Valbonesi, 2023. "Public Procurement and the Risk of Severe Weather Events," "Marco Fanno" Working Papers 0303, Dipartimento di Scienze Economiche "Marco Fanno".
    12. Kris De Jaegher & Michal Soltes & Vitezslav Titl, 2023. "Easing Renegotiation Rules in Public Procurement: Evidence from a Policy Reform," CERGE-EI Working Papers wp757, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    13. Visa Pitkänen, 2022. "Competition and efficiency in repeated procurements: Lessons from the Finnish rehabilitation markets," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 820-835, May.
    14. Jorge González Chapela, 2019. "Weight Values, Scoring Rules and Abnormally Low Tenders Criteria in Multidimensional Procurement: Effects on Price," Hacienda Pública Española / Review of Public Economics, IEF, vol. 228(1), pages 55-81, March.
    15. Yugank Goyal, 2019. "How Governments Promote Monopolies: Public Procurement in India," American Journal of Economics and Sociology, Wiley Blackwell, vol. 78(5), pages 1135-1169, November.
    16. Francesco Corielli & Stefano Gatti & Alessandro Steffanoni, 2010. "Risk Shifting through Nonfinancial Contracts: Effects on Loan Spreads and Capital Structure of Project Finance Deals," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(7), pages 1295-1320, October.
    17. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2004. "Soft Budgets And Highway Franchising," Documentos de Trabajo 176, Centro de Economía Aplicada, Universidad de Chile.

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    More about this item

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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