Abstract
If the owner of an object sells it through an auction run by an agent of hers, corruption may appear. In a first-price auction, corruption can make honest bidders more or less aggressive, or their behavior can remain unchanged. We identify sufficient conditions for each of the three possibilities. We analyze the consequences of corruption on efficiency, bidders' welfare and expected revenue, and study how it influences the number of bidders when participation is costly. Our results apply, as a particular case, to the situation -unrelated to corruption- where one of the bidders is granted a right of first refusal.
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