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Calcul économique et incertitude socio-politique : une procédure d’évaluation des projets publics

Author

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  • Robert Kast
  • Stéphane Luchini

Abstract

[eng] Public Contract Bidding : Fixed-Price Contracts Amended by Change Orders or Incentive Contracts ?. French procurement contracts are usually awarded by fixed-price contracts. However, fixed prices can be raised by change orders that occur after the contract is signed. The authors develop a model of this procedure that gives an explanation for low-ball bidding strategies and cost overruns. Then the authors show that this procedure can yield an expected price lower than the optimal linear incentive contract of McAfee and McMillan (1986). [fre] Public Contract Bidding : Fixed-Price Contracts Amended by Change Orders or Incentive Contracts ?. French procurement contracts are usually awarded by fixed-price contracts. However, fixed prices can be raised by change orders that occur after the contract is signed. The authors develop a model of this procedure that gives an explanation for low-ball bidding strategies and cost overruns. Then the authors show that this procedure can yield an expected price lower than the optimal linear incentive contract of McAfee and McMillan (1986).

Suggested Citation

  • Robert Kast & Stéphane Luchini, 2002. "Calcul économique et incertitude socio-politique : une procédure d’évaluation des projets publics," Économie et Prévision, Programme National Persée, vol. 156(5), pages 73-84.
    • Handle: RePEc:prs:ecoprv:ecop_0249-4744_2002_num_156_5_6883
    DOI: 10.3406/ecop.2002.6883
    Note: DOI:10.3406/ecop.2002.6883
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    References listed on IDEAS

    as
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