We study the relationship between collusion and corruption in a stylized model of repeated procurement where the cost of reporting corrupt bureaucrats gives rise to a free riding problem. As in Dixit (2015, 2016), cooperation among honest suppliers alleviates free-riding in reporting. However,...

We study the potential benefits of adding a lottery component to cut the main risks associated with standard negotiated and rule-based auction procurement procedures. We show that adopting a two stage approach in which bureaucrats first negotiate with a small number of bidders to assess their...

We compare two commonly used mechanisms in procurement: auctions and negotiations. The execution of the procurement mechanism is delegated to an agent of the buyer. The agent has private information about the buyer's preferences and may collude with one of the sellers. We provide a precise...

We study the relationship between collusion and corruption in a stylized model of repeated procurement where the cost of reporting corrupt bureaucrats gives rise to a free riding problem. As in Dixit (2015, 2016), cooperation among honest suppliers alleviates free-riding in reporting. However,...

We study the potential benefits of adding a lottery component to cut the main risks associated with standard negotiated and rule-based auction procurement procedures. We show that adopting a two stage approach in which bureaucrats first negotiate with a small number of bidders to assess their...

We compare two commonly used mechanisms in procurement: auctions and negotiations. The execution of the procurement mechanism is delegated to an agent of the buyer. The agent has private information about the buyer’s preferences and may collude with one of the sellers. We provide a precise...

The study analyzes the reliability of corruption risk indicators using Hungarian public procurement data, specifically focusing on EU-funded contracts associated with a cartel case revealed by the Hungarian Competition Authority (HCA) in 2016. The investigation aims to determine whether...

Using the regression discontinuity design of close gubernatorial elections in the U.S., we identify a significant and positive impact of the social networks of corporate directors and politicians on firm value. Firms connected to elected governors increase their value by 3.89%. Political...

The study analyzes the reliability of corruption risk indicators using Hungarian public procurement data, specifically focusing on EU-funded contracts associated with a cartel case revealed by the Hungarian Competition Authority (HCA) in 2016. The investigation aims to determine whether...

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...