offers especially when many consumers prefer comparable offers. This occurs after initial periods with strong competition and … leads to lower welfare for all consumers. In treatments where firms cannot monitor the competition, firms end up having to …

such as defense procurement. This contradicts predictions from standard economic theory. We conduct a laboratory experiment … literatures. The theory of planned behaviour explains why organizations may engage in contract auditing even when markets are … imperfect. Social preference theory explains why traders may adjust prices when a contract audit indicates that the original …

such as defense procurement. This contradicts predictions from standard economic theory. We conduct a laboratory experiment … literatures. The theory of planned behaviour explains why organizations may engage in contract auditing even when markets are … imperfect. Social preference theory explains why traders may adjust prices when a contract audit indicates that the original …

stage and subsequent price competition at the second. We conduct seven different treatments of such markets, varying the …