type="main" xml:id="ecca12090-abs-0001" <p>We experimentally compare first-price auctions and multilateral negotiations after introducing horizontal product differentiation into a standard procurement setting. Both institutions yield identical surplus for the buyer, a difference from prior findings...</p>

Abstract When policymakers are uncertain about the private costs of pollution abatement, using simple auctions that jointly determine the price and quantity of pollution permits enables them to set precisely the quantity of pollution they would choose if they knew abatement costs perfectly....