Within the framework of the common value model, we examine the magnitude of the difference in expected outcome between first-price and second-price sealed bid auctions. The study is limited to two empirical specifications of bidders signals: Weibull and normal distribution. The optimal bid...

Like other Sahel countries, Senegal experienced a succession of food and nutrition crises in 2005, 2008, 2010 and 2012. In 2012, severe food insecurity affected around 739,000 people, corresponding to 6.2 per cent of the Senegalese population. Nutrition surveys conducted in 2012 showed overall...

We develop a model to discuss a government's incentives to delegate to bureaucrats the regulation of an industry. The industry consists of a polluting firm with private information about its production technology. Implementing a transfer-based regulation policy requires the government to make...

This paper analyzes the design of innovation contests when the quality of an innovation depends on the research approach, but the best approach is unknown. Inducing a variety of research approaches is desirable because it generates an option value. We show that suitable contests can induce such...