Large-scale Privatization via Auctions

1. Introduction: Overview of the Problems and Issues in Transformation.- 1.1 Macroeconomic Level Issues.- 1.2 Microeconomic Issues.- 1.3 The Role of Privatization in Transforming Economies.- 2. Privatization: Concept, Theory, Issues and Experiences.- 2.1 Reasons for Privatization.- 2.2 Other Theories of Privatization.- 2.3 Methods of Privatization.- 2.4 Preliminary Assessment of the Results of Privatization Activities.- 2.5 Issues in the Privatization of Land in Transforming Economies.- 3. Objectives and Scope of the Study.- 3.1 Analytic Framework.- 3.2 Mechanism Design and Auction.- 4. The Theory of Incentives and Mechanism Design.- 4.1 The Nature of Information.- 4.2 Information Asymmetry and the P-A Problem.- 4.3 The Theory of Mechanism Design.- 5. Auction Mechanisms.- 5.1 The Static Bayesian Game and the Bayesian-Nash Equilibrium Concept.- 5.2 The Single Unit Auction Game: The Benchmark Model.- 5.3 Effects of Risk Aversion.- 5.4 Sales Revenue.- 5.5 Affiliated Valuation and the Winner’s Curse.- 5.6 Multiple-Unit Auctions.- 6. Auctions in Privatization.- 6.1 Overview.- 6.2 The P-A Problem Revisited.- 6.3 Recent Experiences.- 6.4 Auction for Privatizing Land.- 7. Modeling an Auction Mechanism for Land.- 7.1 Design Considerations.- 7.2 Multiple-Unit Auction of Land.- 7.3 Effects of Restrictions in Land Privatization.- 8. Summary and Conclusions: Issues and Implications in the Use of Auctions for Land Privatization.- 8.1 Economic Efficiency and Overall Welfare Effects.- 8.2 Informational Burden.- 8.3 Financial Aspects.- 8.4 Equity and Fairness.- 8.5 Private Land Market Development.- 8.6 Political, Institutional, and Legal Aspects.- 9. Zusammenfassung.- 10. References.