Using a sample of 680 and 1,300 judicial and private auctions respectively, we analyze the effect on the wealth of … those the law is intended to protect of different regulations applicable to each type of auctions. We find that consistent … with a simple economic model, Courts assign judicial auctions in a discretional manner, and that the assigned auctioneers …

. Firms have different costs, and cost efficiency is private information at the auction stage and the market competition stage … conditions under which auctions may select inefficient firms and therefore lead to an inefficient allocation of resources …

because it is prone to rushes, i.e., all active bidders quitting simultaneously, that undermine its efficiency. Our second …