On advance payments in tenders with budget constrained contractors
研究了承包商资金有限且面临成本超支风险时，招标中预付款比例对投标策略和违约决策的影响，帮助采购方优化支付方案。
Abstract We consider procurement auctions in settings where potential contractors have limited funds and face ex post risks, that is, cost overruns that can lead to the contractors' defaults. The bidding strategies and the default decisions are shaped by the incentive—willing to finish—constraints, and the resource—able to finish and feasibility—constraints. We examine payment schemes where the advance share of the award is paid immediately after the auction with the rest payable upon successful completion of the project. We identify the trade‐offs the procurer faces when choosing among such schemes, and explore the factors that influence the optimal advance share.