Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient allocation rules that award the project to a less efficient firm with positive probability. Procurement projects often involve ex post moral hazard after the competitive process is...

Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient allocation rules that award the project to a less efficient firm with positive probability. Procurement projects often involve ex post moral hazard after the competitive process is...

We study an economy in which large technology companies, Big Techs (BTs), provide credit to firms operating on their platforms. We focus on two advantages that BTs have with respect to banks: better information on their clients and better enforcement of credit repayment since BTs can exclude a...