Competitive Procurement and Asset Specificity

V. Sorana

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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.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages50
Volume2003-96
Publication statusPublished - 2003

Publication series

NameCentER Discussion Paper
Volume2003-96

Keywords

  • competitiveness
  • transaction costs
  • franchising
  • monopoly
  • regulations
  • auctions
  • markov processes
  • general equilibrium
  • asset specificity

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