Public procurement faces the risk that the contractor goes bankrupt before the completion of the work. The possibility to declare bankruptcy makes the contractors behave more aggressively.This leads to abnormally low tenders and to the break-down of revenue equivalence. Upon this result we...

In this paper we analyse a multidimensional auction where quality scores are private information of the Public Administration (PA). We introduce a multistage procedure: in the first stage every participant submits a technical proposal, without knowing what the buyer evaluation is. In the second...

Concerns about the environmental effects of procurement decisions are gaining momentum. We investigate how the environmental quality of public purchases changes under two possible institutional settings: a centralized one, where a single regulator is in charge of both production efficiency and...

The endowment effect, status quo bias, and loss aversion are robust and well documented results from experimental psychology. They introduce a wedge between the prices at which one is willing to sell or buy a good. The objective of this paper is to address this wedge. We show that the presence...

We consider an oligopoly with a principal-agent relationship, in which a firm's marginal cost is decreasing in a manager's managerial effort and is subject to an additive uncertainty. Two types of firms operate: one displays symmetric information between the owner and the manager, another...

Plaintiffs have either stong or weak cases. Both cases should be taken to court, yet weak cases need more work by the attorney than strong cases. Only the attorney knows whether a case needds additional work or not; the plaintiff is forced to rely on the attorney's recommendation. We show that...

We study the effects of varying the confidence level of speculators and the confidence level attributed to them by their competitors, about the precision of their private information in the framework of the model of financial markets with imperfect competition a la Kyle (1989).

We analyze the effects of uncertainty and private information on horizontal mergers. Firms face uncertain demands or costs and receive private signals. They may decide to merge sharing their private information. If the uncertainty parameters are independent and the signals are perfect,...