Arbeitspapier

Strategic procurement, openness and market structure

We examine strategic procurement behaviour by governments and its effect on market structure in sectors, such as defence, where the government is the dominant consumer. In a world economy with trade between producers, and between producers and non-producers, we use a modified Dixit-Stiglitz utility function with an independent taste for variety. Governments can, in effect, choose the number of domestic firms and their size by adjusting the procurement price. Unlike the standard model with no independent taste for variety and no external sector of non-producers, there are incentives for subsidies, openness impacts on industrial structure and there are potential gains from procurement coordination between producer countries.

Sprache
Englisch

Erschienen in
Series: Department of Economics Discussion Paper ; No. 05,03

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
National Security and War
Market Structure, Firm Strategy, and Market Performance: General
Thema
procurement
openness
market structure
defence and pharmaceutical sectors
Öffentliche Beschaffung
Marktstruktur
Nutzenfunktion
Betriebliche Preispolitik
Unternehmenskooperation

Ereignis
Geistige Schöpfung
(wer)
García-Alonso, María del Carmen
Levine, Paul
Ereignis
Veröffentlichung
(wer)
University of Kent, Department of Economics
(wo)
Canterbury
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • García-Alonso, María del Carmen
  • Levine, Paul
  • University of Kent, Department of Economics

Entstanden

  • 2005

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