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S2E2 - Cailin Slattery, Bidding for Firms

Densely Speaking

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The Auction Model of State and Local Subsidy Auctions

The auction approximates really well how states and cities negotiate with firms. So you can kind of think of a state hearing that they're in the running for a new auto manufacturing plant, for example. This bargaining process where the states are learning about other states offers and reviving their offers up, basically approximates a second price auction.

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