“…7 Having said that, it is not difficult to conceive of models where a government buyer with market power could purchase goods at prices below those in a perfectly competitive market and distort the allocation of resources. 8 In addition to the seminal analyses of Baldwin (1970) and Baldwin and Richardson (1972), relevant contributions that have assumed competitive markets include Lowinger (1976), Herander and Schwartz (1982), Joson (1985), and Kim (1994). Miyagiwa (1991), Branco (1994Branco ( , 1999, Laffont and Tirole (1993), and Trionfetti (2000) extend the analysis to consider imperfect competition.…”