How can organizations ensure that they can get best value for money in their procurement decisions? How can they stimulate innovations from their dedicated suppliers? With contributions from leading academics and professionals, this 2006 handbook offers expert guidance on the fundamental aspects of successful procurement design and management in firms, public administrations, and international institutions. The issues addressed include the management of dynamic procurement; the handling of procurement risk; the architecture of purchasing systems; the structure of incentives in procurement contracts; methods to increase suppliers' participation in procurement contests and e-procurement platforms; how to minimize the risk of collusion and of corruption; pricing and reputation mechanisms in e-procurement platforms; and how procurement can enhance innovation. Inspired by frontier research, it provides practical recommendations to managers, engineers and lawyers engaged in private and public procurement design.
• Each chapter contains 'practical conclusions': guidelines which focus the readers' attention on the main points that efficient procurement procedures should consider • Written in a real-life business context, as each chapter is a response to problems encountered by the authors in their consultancy activity • Innovative solutions proposed in the light of research
List of figures; List of tables; Part I. Preliminaries: 1. Introduction Nicola Dimitri, Gustavo Piga and Giancarlo Spagnolo; 2. The variety of procurement practice: evidence from public procurement Laura Carpineti, Gustavo Piga and Matteo Zanza; Part II. General Strategic Principles: 3. When should procurement be centralized? Federico Dini, Nicola Dimitri and Gustavo Piga; 4. Procurement contracting strategies Gian Luigi Albano, Giacomo Calzolari, Federico Dini, Elisabetta Iossa and Giancarlo Spagnolo; 5. Incentives and award procedures: competitive tendering vs. negotiations in procurement Patrick Bajari and Steven Tadelis; Part III. Competitive Tendering Strategies: 6. Information and competitive tendering Gian Luigi Albano, Nicola Dimitri, Riccardo Pacini and Giancarlo Spagnolo; 7. Division in lots and competition in procurement Veronika Grimm, Riccardo Pacini, Giancarlo Spagnolo and Matteo Zanza; 8. Multi-contract tendering procedures and package bidding in procurement Nicola Dimitri, Riccardo Pacini, Marco Pagnozzi and Giancarlo Spagnolo; 9. Innovative dynamic auctions in procurement Lawrence Ausubel and Peter Cramton; Part IV. Attracting and Screening Participants: 10. Business strategies for e-procurement (B2B) platforms Bruno Jullien; 11. Fostering participation Gian Luigi Albano, Nicola Dimitri, Isabelle Perrigne and Gustavo Piga; 12. Scoring rules Federico Dini, Riccardo Pacini and Tommaso Valletti; 13. Managing risky bids Andreas Engel, Juan José Ganuza, Esther Hauk and Achim Wambach; Part V. Preventing Collusion and Corruption: 14. Preventing collusion in procurement Gian Luigi Albano, Paolo Buccirossi, Giancarlo Spagnolo and Matteo Zanza; 15. Bidding rings and the design of anti-collusive measures for auctions and procurement William E. Kovacic, Robert C. Marshall, Leslie M. Marx and Matthew E. Raiff; 16. Preventing corruption in procurement Yvan Lengwiler and Elmar Wolfstetter; Part VI. Dynamic Forces and Innovation: 17. Managing dynamic procurement Tracy R. Lewis and Huseyin Yildirim; 18. Designing feedback mechanisms for e-procurement platforms Chrysanthos Dellarocas, Federico Dini and Giancarlo Spagnolo; 19. Procurement and innovation Luis Cabral, Guido Cozzi, Vincenzo Denicolò, Gustavo Piga, Giancarlo Spagnolo and Matteo Zanza.
Review of the hardback: 'Auction theory has a crucial role in designing practical procurement strategies. With its distinguished list of editors and contributors, and its focus on translating theoretical results into practical conclusions, this volume seems certain to become an essential reference for practitioners.' Paul Klemperer, Edgeworth Professor of Economics, Oxford University and author of Auctions: Theory and Practice
Review of the hardback: 'The Handbook of Procurement is just what the field of public procurement needs at the present moment in its history. It covers essential elements of public procurement including competitive tendering strategies and procurement transparency.' Khi V. Thai, Florida Atlantic University, and Editor-in-Chief, Journal of Public Procurement
Review of the hardback: 'A very useful textbook, combining theory, innovative research into international public procurement and practical advice into a single volume. There are useful sections for procurement professionals on the theory behind dynamic procurement systems - and auctions in particular.' Hugh Barrett, Chief Executive of OGCbuying.solutions