The Research Area Comprises:

    • General Rules for Efficient Procurement
    • Optimal Delegation of Decision-Making Powers

The research area "Design of General Rules for Public Procurement" analyses the optimal design of general rules for public procurement. Public procurement accounts for about 16 per cent of EU gross domestic product. Therefore, even small relative efficiency gains result in savings in the billions. Designing a procurement process often constitutes a complex problem because several aims must be considered and weighed against each other. Due to their complexity, procurement mechanisms need to be tailored to each specific situation. Nevertheless, it is possible to determine some general rules, which play a key role in generating efficiency. These rules are of paramount importance since a detailed examination of each process is almost impossible due to the large quantity and variety of procurement processes. Furthermore, this complexity often requires that the implementation of the procurement process has to be delegated to an agent (buyer, auctioneer). These agents often have detailed information which is unavailable to the buyer. The aim is to identify decision-making powers which enable agents to use their knowledge, but which at the same time minimise potential abuse, for example if the particular interests of the agent are not in line with the objectives of the buyer.

Contact

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nicolas.fugger@zew.de