Are Discriminatory Procurement Policies Motivated by Protectionism?
AbstractWhen purchasing goods and services, governments often discriminate in favor of domestic suppliers. It is widely assumed that such behavior is motivated by protectionism. Although this interpretation is sometimes valid, it is also puzzling. After reviewing some of the puzzles, the paper proposes an alternative explanation of preferential procurement based on the assumption that governmental buyers want to purchase goods and services at minimum cost but must do this in a context in which, because of the presence of unverifiable services, contracts are necessarily incomplete. The paper argues that preferential purchasing can guarantee the efficient delivery of these unverifiable services. Copyright 1996 by WWZ and Helbing & Lichtenhahn Verlag AG
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Kyklos.
Volume (Year): 49 (1996)
Issue (Month): 1 ()
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962
Other versions of this item:
- BRETON, Albert & SALMON, Pierre, 1995. "Are discriminatory procurement policies motivated by protectionism ?," LATEC - Document de travail - Economie (1991-2003) 1995-10, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
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- Dimitri Mardas, 2010. "Stabilization and Association Agreements (SAAs), Europe Agreements, and Public Procurement," Atlantic Economic Journal, International Atlantic Economic Society, vol. 38(3), pages 331-343, September.
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32881, University Library of Munich, Germany, revised 18 Jul 2011.
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- Naegelen, Florence & Mougeot, Michel, 1998. "Discriminatory public procurement policy and cost reduction incentives," Journal of Public Economics, Elsevier, vol. 67(3), pages 349-367, March.
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