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Persistent link: https://www.econbiz.de/10014317257
Adverse selection in procurement arises when low-cost bidders are also lowquality suppliers. We propose a mechanism called LoLA which, under some conditions, is the best incentive-compatible mechanism for maximizing either the seller's or the social surplus in the presence of adverse selection....
Persistent link: https://www.econbiz.de/10013202728