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We investigate …rms' incentives for cost reduction in the …rst price sealed bid auction, a format largely used for procurement. A central feature of the model is that we allow …rms to be heterogeneous. Though private value …rst price auctions are not games with monotonic best responses, we …nd that for comparative statics purposes they behave like these(More)
We propose a Bayesian approach to empirical auction models. We argue that the Bayesian paradigm is more suitable to the study of empirical strategic models than its frequentist counterpart. We perform an estimation of our model on an auction of handmade miniature sculptures organized by Christie's in London. * This work owes a lot to the meetings of the "(More)
I investigate the effect of U.S. border enforcement on the net flow of Mexican undocumented migration, both of which have been considerably increasing in the last three decades. This effect is theoretically ambiguous, as increases in border controls deter prospective migrants from crossing the border illegally but lengthen the duration of current illegal(More)
Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between(More)
This paper argues that governments should pay greater heed to recruitment and retention when designing performance measurement systems for bureaucracies. In the face of pervasive rigidities in public sector pay, internal performance measurement rewards quitters and scars stayers and therefore makes it difficult to recruit and retain. Full and immediate(More)
1 We are indebted to two anonymous referees for most valuable comments; we also Abstract We consider two ascending auctions for multiple objects: the SEAMO (simultaneous English auction for multiple objects) and the the JAMO (Japanese auction for multiple objects). We first derive a (competitive) Perfect Bayesian Equilibrium of the JAMO by exploiting the(More)
This paper models the effect of anti-poverty conditional cash transfer programs on labor migration. Their effect on migration depends on both the size and type of transfers. Conditional transfers, where the potential recipient has to comply with some requirement in order to qualify for eligibility, may decrease contemporaneous migration for some households,(More)
Roland for useful comments. I am solely responsible for remaining errors. Abstract We study the government's decision to sell a state-owned enterprise to strategic investors in a common value auction setting. The government can choose to sell his control stake all at once, or to design a sequential auction of shares. The sequential auction allows(More)
F Fo os st te er ri in ng g P Pa ar rt ti ic ci ip pa at ti io on n i in n C Co om mp pe et ti it ti iv ve e P Pr ro oc cu ur re em me en nt t Abstract A seminal result in the theory of competitive bidding holds that the buyer can lower the expected awarding price of a procurement contract by setting a reserve price below her opportunity cost for realizing(More)