ART - An Economic Approach to Public Procurement 2008

The document discusses various aspects of public procurement, specifically focusing on award systems and economic methods applied to discount calculations. The document highlights the importance of transparency in award systems and the need to strike a balance between transparency and economic interests. It provides an example of how certain parts of the award system can be kept secret while still maintaining transparency. The document also discusses the application of economic methods to discount calculations in procurement contracts. It explains how discounts can be offered based on factors such as yearly turnover and efficiency improvements over time. It provides a mathematical calculation for determining the optimal value of a discount based on the total cost of ownership. Furthermore, the document explores the use of game theory methods in award systems where scores for criteria are relative. It mentions that in many systems, the score for price is calculated by comparing it to the lowest or highest price, or both. This comparison helps in determining the relative competitiveness of the offered price. Overall, the document provides insights into the complexities of award systems and economic considerations in public procurement, including the use of game theory and the calculation of discounts based on various factors.