for private gain. We study the relationship between discretion and corruption in Italian government procurement auctions …, using a confidential database of firms and procurement officials investigated for corruption by Italian enforcement …, discretionary procedure auctions are associated with corruption only when conducted with fewer than the formally required number of …

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 …