Dave Warsh, Economic Principals.com

Auctions and Politicians

Newly-created markets resting on some form of auction process can be found for commodities of all sorts these days, from electricity and advertising to carbon emission and radio-spectrum rights. But for all their success organizing private markets, economists still often face an uphill struggle when it comes to winning government work. The reason is simple: auctions are all about, as the old saying goes, getting the most feathers out of the goose.

 

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