Corruption and Competition in Public Market Auctions

摘要: This paper investigates the effect of corruption on competition in government procurement auctions. Our assumption is that bureaucrat (i.e. agent administers market), if corrupt, may provide a favour exchange for bribe. The we consider most our analysis opportunity to readjust bid. We show key facilitate collusion price between firms. can result high public spending and inefficient allocation. discuss other forms bureaucratic discretion process analyse conditions under which unilateral anti-corruption controls restore competition.