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We study the effects of corruption on equilibrium competition and social welfare in a first-price public procurement … government, who may request a bribe from the winning firm afterward. We first show that, in the absence of corruption, the … bureaucrat will invite more than socially optimal number of firms into the auction. Secondly, the effects of corruption on …
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This paper uses auction theory to explain the unique design of the 1998-2013 posting system agreed to between Major League Baseball and the Japanese Nippon Professional Baseball League that allowed for the transfer of baseball players from Japan to the United States. It has some similarities and...
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lead to equilibria, where politicians receive corruption bribes. Furthermore, the model implies a non …-monotonic relationship between financial openness and corruption and a positive relationship between financial openness and government size …
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