Anthon, Signe creator Thorsen, Jellesmark Bogetoft, Peter text xu| 2007 continuing ng p.221-44. We investigate a bureaucratic principal responsible for the procurement of goods and services from private agents. the bureaucrat is evaluated on output and controlled by a limited budget. The agents maximize profit, have private information about variable production costs, and have positive outside options which are lost upon acceptance of a procurement contract. The setting is relevant for, e.g. governmental agencies. We show how this setup makes probabilistic rationing and overproduction for low-cost agents a useful tool for the bureaucrat. - Reproduced. Bureaucracy Annals of Public and Cooperative Economics 180718