How can organizations ensure that they can get best value for money in their procurement decisions? How can they stimulate innovations from their dedicated suppliers? With contributions from leading academics and professionals, this 2006 handbook offers expert guidance on the fundamental aspects of successful procurement design and management in firms, public administrations, and international institutions. The issues addressed include the management of dynamic procurement; the handling of procurement risk; the architecture of purchasing systems; the structure of incentives in procurement contracts; methods to increase suppliers' participation in procurement contests and e-procurement platforms; how to minimize the risk of collusion and of corruption; pricing and reputation mechanisms in e-procurement platforms; and how procurement can enhance innovation. Inspired by frontier research, it provides practical recommendations to managers, engineers and lawyers engaged in private and public procurement design.
1 Introduction by Nicola Dimitri and Gustavo Piga and Giancarlo Spagnolo 3
2 The variety of procurement practice : evidence from public procurement by Laura Carpineti and Gustavo Piga and Matteo Zanza 14
3 When should procurement be centralized? by Nicola Dimitri and Federico Dini and Gustavo Piga 47
4 Procurement contracting strategies by Gian Luigi Albano and Giacomo Calzolari and Federico Dini and Elisabetta Iossa and Giancarlo Spagnolo 82
5 Incentives and award procedures : competitive tendering vs. negotiations in procurement by Patrick Bajari and Steve Tadelis 121
6 Information and competitive tendering by Gian Luigi Albano and Nicola Dimitri and Riccardo Pacini and Giancarlo Spagnolo 143
7 Division into lots and competition in procurement by Veronika Grimm and Riccardo Pacini and Giancarlo Spagnolo and Matteo Zanza 168
8 Multi-contract tendering procedures and package bidding in procurement by Nicota Dimitri and Riccardo Pacini and Marco Pagnozzi and Giancarlo Spagnolo 193
9 Dynamic auctions in procurement by Lawrence M. Ausubel and Peter Cramton 220
10 Pricing and other business strategies for e-procurement platforms by Bruno Jullien 249
11 Fostering participation by Gian Luigi Albano and Nicola Dimitri and Isabelle Perrigne and Gustavo Piga 267
12 Scoring rules by Federico Dini and Riccardo Pacini and Tommaso Valletti 293
13 Managing risky bids by Andreas Engel and Juan-Jose Ganuza and Esther Hauk and Achim Wambach 322
14 Preventing collusion in procurement by Gian Luigi Albano and Paolo Buccirossi and Giancarlo Spagnolo and Matteo Zanza 347
15 Bidding rings and the design of anti-collusive measures for auctions and procurements by William E. Kovacic and Robert C. Marshall and Leslie M. Marx and Matthew E. Raiff 381
16 Corruption in procurement auctions by Yvan Lengwiler and Elmar Wolfstetter 412
17 Managing dynamic procurements by Tracy R. Lewis and Huseyin Yildirim 433
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