suppliers. We also compare other common contests, in particular, fixed-prize tournaments and auctions. Like bonus tournaments …, auctions implement the socially optimal diversity, but usually with higher rents for the suppliers. Fixed-prize tournaments … implement insufficient diversity, but may nevertheless be preferred by the buyer to auctions because of lower supplier rents. …

option value. An auction induces the social optimum, while a fixed-prize tournament induces insufficient diversity. The …

We study the effects of corruption on equilibrium competition and social welfare in a first-price public procurement … auction. In our model, firms are invited into the auction at positive costs, and a bureaucrat runs the auction on behalf of a … bureaucrat will invite more than socially optimal number of firms into the auction. Secondly, the effects of corruption on …

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 over. A procurement mechanism must combine an incentive scheme with the …