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We compare beauty contests with first-price sealed-bid and scoring auctions, using data on public procurement of … higher price sensitivity of procurement bureaucrats in scoring (and first-price) auctions. There is more entry in beauty … contests, by firms favored in them. Reduced entry into the scoring and price only auctions largely explains why the procurement …
Persistent link: https://www.econbiz.de/10013028436
We provide a positive analysis of the equilibrium bidding and bribing strategies with and without corruption in a first-price, sealed-bid, procurement auction with two-dimensional-type bidders. With corruption, we assume that the quality of the bidders are unobservable and non-contractible...
Persistent link: https://www.econbiz.de/10012720196
To estimate demand for labor, we use a combination of detailed employment data and the outcomes of procurement auctions …,000 auctions in Austria in the time period 2006 until 2009. Our main results show that the winning firm significantly increases … productivity improvements induced by the crisis as well discuss implications for fiscal and stimulus policy in the crisis. …
Persistent link: https://www.econbiz.de/10011854110
We propose a non-sequential search model with a continuum of consumers and a finite number of firms. Both consumers and firms are heterogeneous. Consumers differ in search costs. Firms have private marginal costs of production. We show that an equilibrium price dispersion can arise in this model...
Persistent link: https://www.econbiz.de/10012956396
Governments purchase everything from airplanes to zucchini. This paper investigates whether the technological intensity of government demand affects corporate R&Dactivities. In a quality-ladder model of endogenous growth, we show that an increase in the share of government purchases in high-tech...
Persistent link: https://www.econbiz.de/10010312075
Persistent link: https://www.econbiz.de/10012583580
Disputes over penalties for breach of contract are often solved in court. A simple model shows how inefficient courts may induce public buyers to refrain from enforcing penalties for late delivery to avoid litigation, inducing sellers to delay. Using a large dataset on Italian public...
Persistent link: https://www.econbiz.de/10013050577
Corruption is widely spread across the world and is believed to affect economic growth negatively. It is most persistent in the developing countries. Russian economy is not an exception. Significant losses are also reported in public procurement in Russia due to corruption. Unfortunately, to...
Persistent link: https://www.econbiz.de/10013043514
Over ten years after the launching of the Single Market the EC?s directives aimed to the liberalization of government procurement remain largely unimplemented. This paper analyses the consequences on the pattern of specialization, on welfare and on income inequalities of the persistence of a...
Persistent link: https://www.econbiz.de/10014077359
How costly is the misallocation of production that we might expect to result from distortions such as market power, incomplete contracts, taxes, regulations, or corruption? This paper develops new tools for the study of misallocation that place minimal assumptions on firms’ underlying...
Persistent link: https://www.econbiz.de/10014347985