TITLE

MULTIPLE SOURCE PROCUREMENT COMPETITIONS

AUTHOR(S)
Seshadri, Sudhindra; Chatterjee, Kalyan; Lilien, Gary L.
PUB. DATE
June 1991
SOURCE
Marketing Science;Summer91, Vol. 10 Issue 3, p246
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Relationships between buying and selling organizations in business markets are varied and complex. One important relationship is procurement, or the type of alliance that buyers form with sellers to fulfill their purchasing needs. Multiple sourcing is often proposed to prevent a variety of procurement problems. We develop a bidding model to investigate the effect of multiple sourcing on competitive behavior prior to supplier selection. The model treats the number of bidders (and the decision to bid) endogenously. This distinctive feature allows us to show that the distribution of the number of bids is not independent of the competition type. Most previous models have not considered this question at all. Although multiple sourcing does increase participation in a bidding competition, we show that it can lead to strategic pre-award price increases that can mitigate the effects of the advantages stressed by most previous analyses of post-award supplier management.
ACCESSION #
4470579

 

Related Articles

  • The knowing-dealing gap. Day, Alan // Supply Management;8/5/2004, Vol. 9 Issue 16, p17 

    Comments on the importance of research function for procurement teams. Impact of market research with decision making process; Management of changes in the market; Areas to consider by the procurement professionals.

  • Zimbabwe branch opens its new doors.  // Supply Management;8/7/2003, Vol. 8 Issue 16, p39 

    Reports on the opening of the Zimbabwe branch of the Chartered Institute of Purchasing and Supply in 2003. Services offered; Profile on the management team.

  • Selling the function.  // Supply Management;7/21/2005, Vol. 10 Issue 15, p40 

    Reports on the outcome of a Chartered Institute of Purchasing and Supply Manchester/Construction North West branch event held in June 2005 that highlighted the need for purchasers to take a better approach to marketing their function.

  • SEMI: North American equipment orders continue downward trend. Deffree, Suzanne // Electronic News;10/1/2007, Vol. 53 Issue 40, p1 

    The article reports on the continuing decline of semiconductor equipment orders of North American-based manufacturers in August 2007. According to San Jose-based industry association Semiconductor Equipment and Materials International (SEMI), manufacturers of semiconductor equipment have posted...

  • Think-tank calls for openness in PFI contracts.  // Supply Management;2/19/2004, Vol. 9 Issue 4, p9 

    Presents the results of a study on the details of procurement in private finance initiative projects conducted by the Institute of Public Policy Research (IPPR) in Great Britain. Response of the National Health Service to the study; Statement of Tim Gosling, an IPPR researcher, on the need for...

  • Choice Game of Collection Strategies in Agricultural Biomass Supply Market. Zhang Fan // Information Technology Journal;2013, Vol. 12 Issue 21, p6137 

    This study studies the difference among three collection strategies for agricultural biomass, i.e., commitment strategy, pure competition strategy and vertical integration strategy. Unlike existing research that is much reported research on qualitative analysis, this study use the method of...

  • Industrial Buyers' Decision-Making Styles. Wilson, David T. // Journal of Marketing Research (JMR);Nov71, Vol. 8 Issue 4, p433 

    This study identified three decision-making styles of industrial buyers and found that an individual's need for certainty appears to be an important influence upon choice under conditions of uncertainty.

  • AN EXPECTED UTILITY APPROACH TO MODELING ORGANIZATIONAL BUYING DECISIONS. Minor, Michael; Deaton, Marion E. // AMA Winter Educators' Conference Proceedings;1992, Vol. 3, p78 

    Focuses on the buying decisions of business organizations. Introduction of a utility framework for the prediction of organizational buying decisions; Components of the buying process; Approaches to forecasting organizational buying behavior.

  • Profiling Decision Makers.  // Bloomsbury Business Library - Actionlists & Checklists;2007, p196 

    The article offers some suggestions related to making a decision-making team. It is suggested that a decision making team could include senior executives, purchasing professionals, technical employees and marketing employees. Senior executives need an overview of the business benefits of a...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics