Friday, January 10, 2014
Malin Arve (Mannheim) discusses Procurement and Predation: Dynamic Sourcing from Financially Constrained Suppliers.
ABSTRACT: This paper studies the interaction between financially constrained and financially strong firms on a procurement market. It characterizes and discusses a procurement agency's optimal response when faced with financially asymmetric firms. By considering a dynamic setting, both present and future consequences and incentives are taken into account.