We investigate the claim that auctions in procurement are detrimental to the buyer- seller relationship, which is expressed by less trust by the buyer and more oppor- tunistic behavior by the supplier after the sourcing. To do so, we compare exper- imentally a standard auction and a...

We consider the contracting problem of a principal who faces an agent with private information and cannot commit to not renegotiate a chosen contract. To analyze this problem, we propose an infinite horizon negotiation protocol in which renegotiation is frictionless, executed without delay and...

Recently, the combinatorial clock auction has become more and more common in the auctioning of telecommunication licenses. Although the auction design is complex, the promise is that bidding becomes simple - truthtelling is close to optimal. We show that this claim is too strong. The auction...

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...

Liberalization of network industries frequently separates the network from the other parts of the industry. This is important in particular for the electricity industry where private …rms invest into generation facilities, while network investments usually are controlled by regulators. We...

This paper presents an analysis of the recent developments of average market power in Europe by using a broad firm-level database for EU member states. To indicate competitive pressure at the firm-level, markups are estimated following De Loecker (2011), and De Loecker and Warzynski (2012). The...

Das Aufkommen neuer Technologien, die US-Dominanz in der Digitalisierung und insbesondere der Aufstieg Chinas zu einem Konkurrenten stellen die Industrieunternehmen Deutschlands und Europas vor große Herausforderungen. Die Politik, allen voran Deutschland und Frankreich, fordert nun einer...

In der Digitalwirtschaft zielen viele Geschäftsmodelle auf das Erheben von Daten, insbesondere personenbezogenen Daten, ab. Die enormen Datenmengen geben jedoch Anlass zur Diskussion. Werden die Nutzer ausgespäht und Datenmissbrauch betrieben, oder basiert das Geschäftsmodell darauf,...

We consider the problem of a principal who wishes to contract with a privately informed agent and is not able to commit to not renegotiating any mechanism. That is, we allow the principal, after observing the outcome of a mechanism to renegotiate the resulting contract without cost by proposing...