search query: @author Cox, J. / total: 9
reference: 3 / 9
| Author: | Cox, J. |
| Title: | Moral hazard and adverse selection in procurement contracting |
| Journal: | Games and Economic Behavior
1996 : DEC, VOL. 17:2, p. 147-176 |
| Index terms: | ECONOMICS GAMES ADVERSE SELECTION |
| Language: | eng |
| Abstract: | A model of procurement contracting is developed and tested in laboratory experiments. Market performance results are presented for both fixed-price and cost-sharing contracts. Contracts are awarded with first-price sealed-bid or second-price sealed bid auctions. The environment contains post-auction cost uncertainty and opportunity for unmonitored effort in contract cost reduction. Cost-sharing contracts are found to reduce procurement expense but also to be inefficient because of their induced moral hazard waste and cost overruns. |
SCIMA