Set-Asides and Subsidies in Auctions

@article{Athey2007SetAsidesAS,
  title={Set-Asides and Subsidies in Auctions},
  author={Susan Athey and Dominic Coey and Jonathan D. Levin},
  journal={NBER Working Paper Series},
  year={2007}
}
Set-asides and subsidies are used extensively in government procurement and natural resource sales. We analyze these policies in an empirical model of U.S. Forest Service timber auctions. The model fits the data well both within the sample of unrestricted sales where we estimate the model, and when we predict (out of sample) bidder entry and prices for small business set-asides. Our estimates suggest that restricting entry to small businesses substantially reduces efficiency and revenue… Expand
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