Aftermarket social welfare is largely determined by a procurement auction design. Auctions select firms for operating … aftermarkets, and auctions may also impose restrictions on aftermarket prices the winner can charge. This paper compares … aftermarket social welfare generated by first-price and second-price procurement auctions. It reveals that the social welfare …

procurement auctions. Under collusion, bidding constraints weaken cartels by limiting the scope for punishment. This yields a test …

Public agencies mainly rely on two modes to procure goods and services: auctions and direct negotiations. We study a … 1994 policy change in Germany that introduced the possibility to procure rail services in auctions as well as in direct …, auctions improve service levels and reduce prices. As a result, surplus on auctioned lines increased by about 30 …