Recruitment is often delegated to senior employees. Delegated recruitment, however, is vulnerable to moral hazard … because senior employees may avoid recruiting the best candidates who could threaten their future seniority. We find that … relates to the candidates type . Delegation is then superior to direct (owner) recruitment and offering tenure or guaranteed …

paid by the winner. We study the impact of these price-externalities on the first-price auction and the second … independently from the identity of the winner. We prove that the first-price auction is not affected by this kind of price-externalities … by the presence of such price-externalities. In any case, in comparison with the first-price auction, the second …