Changes

==Reference(s)==

Goldberg, Victor P. (1977) "Competitive Bidding and the Production of Precontract Information," Bell Journal of Economics, 8:250-261 [http://www.edegan.com/pdfs/Goldberg%20(1977)%20-%20Competitive%20Bidding%20and%20the%20Production%20of%20Precontract%20Information.pdf pdf]

==Abstract==

This note is concerned with the effects of contractual complexity on the precontract bidding process. Competitive bidding is seen to be a heterogeneous class of devices for transmitting information between organizations. Even for rather simple contracts (e.g., Demsetz' license plates contract), the purchaser is seldom interested solely in price - he is interested in acquiring and providing information as well. For complex contracts, such as a fifteen-year cable television fran- chise, the information problems tend to dominate. The implications of locating the liability for provision of precontract information on providers and on purchasers are considered.