Ganuza, J.-J.; Pechlivanos, L. Heterogeneity-promoting optimal procurement. (English) Zbl 1088.91509 Econ. Lett. 67, No. 1, 105-112 (2000). Summary: When procurement takes place in the presence of horizontally differentiated contractors, the design of the object being procured affects the resulting degree of competition. This paper highlights the interaction between the optimal procurement mechanism and the design choice. Contrary to conventional wisdom, the sponsor’s design choice, instead of homogenizing the market to generate competition, promotes heterogeneity. Cited in 2 Documents MSC: 91B40 Labor market, contracts (MSC2010) Keywords:Procurement; Project design; Horizontal differentiation PDF BibTeX XML Cite \textit{J. J. Ganuza} and \textit{L. Pechlivanos}, Econ. Lett. 67, No. 1, 105--112 (2000; Zbl 1088.91509) Full Text: DOI References: [1] Brennan, T., Making economic sense of the telecommunications act of 1996, Industrial and corporate change, 5, 941-961, (1996) [2] Che, Y.-K., Design competition through multidimensional auction, RAND journal of economics, 24, 668-680, (1993) [3] Ganuza, J.-J., Pechlivanos, L., 1999. Heterogeneity-Promoting Optimal Procurement, Universitat Pompeu Fabra, Department of Economics and Business, Working Paper no. 377. · Zbl 1088.91509 [4] Laffont, J.-J.; Tirole, J., A theory of incentives in procurement and regulation, (1993), MIT Press Cambridge [5] Maskin, E., Riley, J., 1998. Asymmetric Auction, mimeo, U.C.L.A. · Zbl 0981.91029 [6] McAfee, R.P.; McMillan, J., Government procurement and international trade, Journal of international economics, 26, 291-308, (1989) [7] Myerson, R., Optimal auction design, Mathematics of operations research, 6, 58-73, (1981) · Zbl 0496.90099 This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.