. This is because allocation of the resources has effects on competition of the firms in the aftermarket, and thus a firm … that utilizes the resources less efficiently may make a higher bid to lessen competition.This paper shows first that … product. After the auction ends, the firms engage in Bertrand competition on the Hotelling line. Inefficient allocation may …

sub-optimal level of quality. Then the paper extends the model to incorporate ancillary services, competition and … reputation. We show that ancillary services worsen the conflict of interests of the CRAs and that competition and reputation may …