competition (auctions) may not only increase the probability of default but also expected rents. Thus, weak conditions are … suffcient for auctions to be suboptimal. In particular, we show that pooling firms with higher assets may reduce the cost of …

competition (auctions) may not only increase the probability of default but also expected rents. Thus, weak conditions are … sufficient for auctions to be supoptimal. In particular, we show that pooling firms with higher assets may reduce the cost of …

weakest contractor, stronger price competition (auctions) may not only increase the probability of default but also the … contractorsʼ expected rents. Thus, weak conditions are sufficient for auctions to be suboptimal. In particular, we show that …