ISF WP 2013-3
Table of Contents
Contents
4
Abstract
3
Statement of the problem
5
Background
5
Problem posed and restrictions on the solution
6
Earlier Work
6
Methodological Issues
8
The Problem of Evaluation
8
Producer Behavior
9
Standard Model
9
Problems with the standard model
10
Alternative Description
11
Behavior among Procuring Entities
13
Mathematical Preliminaries
15
Computing the Threshold Value
17
Quality Aspects
17
Gains
18
Costs
19
Data
20
Results and Analysis
22
Gains
22
Costs
22
Optimal Threshold Value
24
An Example
25
Price versus Quality
26
Conclusion
27
Acknowledgements
30
References
31
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