Herweg, Fabian; Schmidt, Klaus M. - 2017 - This version: October 15, 2017
costs are flaws in the initial design. If the project is procured with a price-only auction, sellers who spotted some of the … inefficiencies: inefficient renegotiation, inefficient production and inefficient design. We derive the welfare optimal direct … direct and indirect mechanisms separate the improvement of the design and the selection of the seller who produces the good. …