Adverse selection in procurement arises when low-cost bidders are also lowquality suppliers. We propose a mechanism …. We perform a counterfactual experiment on Italian government procurement auctions: we compute the gain that the … procurement mechanism. …

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 …

We consider a multi-dimensional procurement problem in which sellers have private information about their costs and … Bayesian procurement mechanism that implements the efficient allocation under the constraint that sellers are protected by …