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Discrimination in Dynamic Procurement Design with Learning-by-doing
International Journal of Industrial Organization ( IF 1.739 ) Pub Date : 2021-05-27 , DOI: 10.1016/j.ijindorg.2021.102754
Klenio Barbosa , Pierre C. Boyer

We study the long-run impact of procurement discrimination on market structure and future competition in industries where learning-by-doing makes incumbent firms more efficient over time. We consider a sequential procurement design problem in which local and global firms compete for public good provision. Both firms benefit from learning-by-doing if they provide the public good in the previous period, but global firms only may be able to transfer learning-by-doing from different markets. We show that the optimal procurement has to be biased in favor of the local firm even when all firms are symmetric with respect to their initial cost distribution.



中文翻译:

边学边做动态采购设计中的鉴别

我们研究了采购歧视对市场结构和未来竞争的长期影响,在这些行业中,随着时间的推移,边干边学使现有公司更有效率。我们考虑了一个顺序采购设计问题,其中本地和全球公司竞争公共产品供应。如果两家公司都在前一时期提供公共产品,则它们都将从边干边学中受益,但全球公司可能只能从不同市场中转移边干边学。我们表明,即使所有公司的初始成本分布都是对称的,最优采购也必须偏向于本地公司。

更新日期:2021-06-13
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