traditional procurement (TP) and public-private partnership (PPP). We show that a mixed regime, in which TP is used in one …

Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient … allocation rules that award the project to a less efficient firm with positive probability. Procurement projects often involve ex … post moral hazard after the competitive process is over. A procurement mechanism must combine an incentive scheme with the …

, competition does not eliminate but rather exacerbates inefficiencies arising from contracting with focused agents. Common contract …

make external financing costly, the optimal contract between shareholders and employees involves some degree of risk …

contracts. Theory shows that the possibility of default on a long-term lease generates a risk/lease-length connection. The …

model of vertical integration in a supplier-producer relationship that is rooted in the property-rights theory to learn …