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Procurement Auctions with Ex-ante Auctioneer-Bidder Collusion and Endogenous bribery

Procurement Auctions with Ex-ante Auctioneer-Bidder Collusio...

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中国信息经济学会2012学术年会暨第四届博士生论坛

作者： Huang He,Li Zhipeng

We study three-tier government procurement auctions,in which the auctioneer may collude with one ex-ante favored bidder and the government regulates the auctioneer with a Performance-Based Transfer（PBT）.The favored bidder is permitted by the auctioneer to submit two bids simultaneously in exchange for a bribe that is proportional to the difference between the two *** bribe share is the auctioneer’s decision *** the bribe share is given,the favored bidder adopts a piecewise strategy: he bids honestly if his cost is too high（higher than a threshold） to afford the bribe;he bribes and submits two bids if his cost is too low（lower than another threshold）,but in this case he is so efficient that his optimal strategy is too aggressive to appear natural,so he has to adopt a sub-optimal strategy to conceal the corruption;only when his cost is neither too high nor too low（between the two thresholds）,he can make the most of the privilege of submitting two *** two thresholds are decreasing in the bribe share and are well distinguished from similar thresholds in related *** the corruption,the allocation is inefficient with a positive probability,which implies a reduced expected social *** the corruption probability and the inefficiency probability are decreasing in the bribe *** the bribe share is one,our model simply turns into the standard *** the corruption results in a higher expected price,the government can regulate the auctioneer by imposing a ratio of the exceeding price on the auctioneer as a *** reward scheme is referred to as the PBT *** the PBT scheme,the optimal bribe share for the auctioneer is an increasing function of the PBT *** implies that if the PBT ratio exceeds some threshold,the optimal bribe share will be one,which implies no corruption and full efficiency.

关键词： Auctions Ex ante Corruption favoritism bribe share Anti-Corruption

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