Hidden Bias: Rate Discounting and Its Distorting Effect on Contract Award Equity
In the first part of this series, A&M Director Ben Wilson introduced an innovative approach to public sector procurement using the Vickrey model. In the second installment explored the innovative use of Combinatorial Clock Acquisitions (CCAs), showcasing their unparalleled ability to streamline government procurement processes and amplify efficiency.
From Game Theory to Behavioral Biases
The third and final part of the series concludes at the intersection of behavioral decision-making and game theory, focusing on cognitive biases in the government's procurement of products. While conventional game theory relies on rationality, incorporating behavioral decision-making uncovers the biases in procurement officers choices—particularly those psychological influences affecting contract choices (behavioral decision-making) amid circumstances shaped by firms' strategies (game theory).
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