To be able to describe informal rural credit markets, we apply the Brock and Scheinkman model of a price setting and capacity constrained oligopoly, where firms tacitly collude on monopoly pricing. We generalise the model to allow for third-degree price discrimination. The interval of aggregate...

Should the government procure equipment for its agencies or let them run their own procurment auctions? Suppose the agency has private information about product quality, but is inclined to favour local suppliers. Decentralization saves bureaucracy and "agency costs", but leads to biased...

Should the government procure equipment for its agencies or let them run their own procurement auctions? Suppose the agency has private information about product quality, but is inclined to favor local suppliers. Decentralization saves bureaucracy and "agency costs" (costs tied to truthful...