Browsing by Author "Hernandez, Igor"

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    Have a cake and eat it too? Using auction design to balance multiple goals in the energy sector
    (2022-04-21) Hernandez, Igor; Hartley, Peter
    This dissertation provides empirical results related to scoring auctions used in the oil and gas sector, and how policymakers design auctions and contracts to balance multiple objectives. Scoring auctions summarize multiple bidding variables into a single index, and the bidder with the highest score wins the auction. I focus initially on the problem of multiple objectives for auctioneers when designing these auctions and some results from the literature. Next, I will discuss the case of onshore marginal leases in Mexico, in which I explore how changes in the scoring rule affect the selection of bidders and the execution of projects. Third, I explore the case of Brazil, in which I compare two commonly used contracts for the oil sector, how they affect bidders’ valuation of a project, their bidding strategies and investment behavior and ultimately government revenues. Finally, I draw lessons to policymakers from these cases.