Corruption and competition in procurement auctions

摘要: We investigate the effect of corruption on competition in procurement. Our assumption is that bureaucrat (i.e., agent administers market), if corrupt, may provide an opportunity for bid readjusments exchange a bribe. As firms expect to be paying bribe, mechanical increase contract price by amount corresponding anticipated show, however, key facilitate collusion between and thereby generate goes far beyond bribe received bureaucrat. discuss other forms bureaucratic discretion procurement process analyze conditions under which unilateral anticorruption controls restore competition.