The Importance Of Reputation In Awarding Public Contracts
AbstractThe main economic literature emphasizes that the efficiency of the awarding procedure depends on the contractual rules, especially those regarding firm's remuneration. In this work we show the existence of a reverse link: when the enforcement of contractual terms is imperfect, the rules of the awarding mechanism can help to improve the efficiency of the contractual relationship. In some circumstances, awarding rules based only on bids are not able to deal with the problem of opportunistic behaviour during the execution of the contract. Our model points out that the public administration can incentivize the contractor's fairness by considering not only competitors' bids, but also their different reputation. Copyright 2006 The Authors Journal compilation � CIRIEC 2006.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Annals of Public and Cooperative Economics.
Volume (Year): 77 (2006)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gervasio Ciaccia & Nicola Doni & Fulvio Fontini, 2008.
"Auctioning Wind Power Sites when Environmental Quality Matters,"
"Marco Fanno" Working Papers
0081, Dipartimento di Scienze Economiche "Marco Fanno".
- Ciaccia, Gervasio & Doni, Nicola & Fontini, Fulvio, 2010. "Auctioning wind power sites when environmental quality matters," Energy Policy, Elsevier, vol. 38(4), pages 1734-1740, April.
- Iossa, Elisabetta & Rey, Patrick, 2012.
"Building Reputation for Contract Renewal: Implications for Performance Dynamics and Contract Duration,"
TSE Working Papers
12-368, Toulouse School of Economics (TSE).
- Elisabetta Iossa & Patrick Rey, 2010. "Building Reputation for Contract Renewal: Implications for Performance Dynamics and Contract Duration," CEIS Research Paper 155, Tor Vergata University, CEIS, revised 28 May 2010.
- Iossa, Elisabetta & Rey, Patrick, 2012. "Building Reputation for Contract Renewal: Implications for Performance Dynamics and Contract Duration," IDEI Working Papers 757, Institut d'Économie Industrielle (IDEI), Toulouse.
- Iossa, Elisabetta & Rey, Patrick, 2013. "Building Reputation for Contract Renewal: Implications for Performance Dynamics and Contract Duration," CEPR Discussion Papers 9571, C.E.P.R. Discussion Papers.
- Athias, Laure & Saussier, Stéphane, 2007. "Contractual flexibility or rigidity for public private partnerships? Theory and evidence from infrastructure concession contracts," MPRA Paper 10541, University Library of Munich, Germany.
- Jeanette Brosig & Timo Heinrich, 2011. "Reputation and Mechanism Choice in Procurement Auctions – An Experiment," Ruhr Economic Papers 0254, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Amaral, Miguel & Saussier, Stéphane & Yvrande-Billon, Anne, 2009. "Auction procedures and competition in public services: The case of urban public transport in France and London," Utilities Policy, Elsevier, vol. 17(2), pages 166-175, June.
- Berardino Cesi & Gian Luigi Albano, 2008. "Past Performance Evaluation in Repeated Procurement: A Simple Model of Handicapping," Working Papers 2008.19, Fondazione Eni Enrico Mattei.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.