When applied to groups, the revelation principle postulates a Bayesian-Nash behavior between agents. Their binding agreements are unenforceable or the principal can prevent them at no cost. The authors analyze instead a mechanism design problem in which the agents can communicate between...

The authors complement the existing knowledge in the renegotiation literature on infrastructure concessions by analyzing government-led renegotiations. They first propose a multiple-period theoretical framework in which both Pareto-improving and rent-shifting renegotiations at the initiative of...

This paper develops a model to analyze the impacts of asymmetric information on optimal universal, service policy in the public utilities of developing countries. Optimal universal service policy is implemented using two regulatory instruments: pricing and network investment. Under...

This paper first studies how cost padding, auditing and collusion with auditors affect the power of incentive schemes in procurement and regulation. Unaudited cost padding requires fixed price contracts. Incentive schemes are more powerful under imperfect auditing than under perfect auditing and...

In this paper we consider a first-price sealed bid auction with a secret reservation price. Such auctions are used frequently in France to sell timber. Within the independent private values paradigm, we show that the equilibrium strategy of the seller is to choose a reservation price equal to...

We develop progressively models enabling us to characterize optimal contracts between government and firms when uncertainty and various types of asymmetric information (moral hazard and adverse selection) are present. We obtain normative contracts which are close to commonly used contracts with...