We introduce a structural model of procurement auctions with incomplete contracts, where a procurer chooses an initial project specification endogenously. The contract between the procurer and the winner of the auction is incomplete in that the two parties may agree to adopt a new feasible...

In this paper we consider a general equilibrium model where heterogeneous agents specialize either in legitimate market activities or in criminal activities and majority rule determines the share of income redistributed and the expenditures devoted to the apprehension of criminals. We calibrate...