Purchases by government agencies from private sector firms are often initiated by solicitation of bids to supply the desired items. Payment to the firm that is awarded the supply contract may be determined by (a) the bid price or (b) bid price plus a share of the difference between observable...

This chapter focuses on laboratory experimental examinations of a particular class of institutions, policies or mechanisms of monopoly control. These are mechanisms which take the existence of a monopoly as a given and ask how might the abuses of monopoly be controlled in a decentralized manner....