We consider a procurement auction, where each supplier has private costs and submits a stepped supply function. We solve for a Bayesian Nash equilibrium and show that the equilibrium has a price instability in the sense that a minor change in a supplier.s cost sometimes result in a major change...

This paper uses econometric analysis to show that the fragmentation of bilateral donors' aid across many recipients tends to raise their administration costs. It then develops an aid allocation model to show how bilateral donors can become much more specialized in terms of which recipients they...

The Millennium Development Goals (MDGs) have been commonly understood as national targets. This interpretation has fostered the critique that the framework favours complacent middle-income countries, discriminates against low-income countries, provides a poor national planning tool and generally...