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Private R&D and Second Sourcing in Procurement: An Experimental Study

Plott, Charles R. and Guler, Kemal (1988) Private R&D and Second Sourcing in Procurement: An Experimental Study. Social Science Working Paper, 684. California Institute of Technology , Pasadena, CA. (Unpublished) http://resolver.caltech.edu/CaltechAUTHORS:20140311-132705679

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Abstract

This study focuses on two topics in government procurement problems: second sourcing, and private research and development investment procurement. A simple theoretical framework is developed to analyze the likely effects on private R&D and procurement prices of recent proposals regarding competition in procurement and the associated data0rights policy. The framework is also used to demonstrate a major flaw in the current methodology used in the evaluation of the benefits of sourcing. IN procurement environments where private R&D is an important factor and potential sellers have commercial markets which may be adversely affected, second sourcing may reduce competition in the initial procurement stage. Experimental methods are used to test for the existence of the effect.


Item Type:Report or Paper (Working Paper)
Alternate Title:Private Research and Development and Second Sourcing in Procurement
Additional Information:The financial support of the National Science Foundation and the California Institute of Technology Laboratory for Experimental Economics and Political Science is gratefully acknowledged. Both Mark Olson and Hsing Yang Lee contributed significantly to the development of the software used in the experiments. The comments of David McNicol on an early draft were very useful.
Group:Social Science Working Papers
Funders:
Funding AgencyGrant Number
NSFUNSPECIFIED
Caltech Laboratory for Experimental Economics and Political ScienceUNSPECIFIED
Record Number:CaltechAUTHORS:20140311-132705679
Persistent URL:http://resolver.caltech.edu/CaltechAUTHORS:20140311-132705679
Official Citation:Plott, Charles R. and Guler, Kemal (1988) Private R&D and Second Sourcing in Procurement: An Experimental Study. Pasadena, CA: California Institute of Technology, 1988. Social Science Working Paper, 684.
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:44250
Collection:CaltechAUTHORS
Deposited By: Susan Vite
Deposited On:27 Mar 2014 18:32
Last Modified:11 Sep 2017 19:00

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