Keyword: «land auctions»

In the context of an increasing shortage of suitable land within the boundaries of municipalities, effective land management is becoming critically important for sustainable territorial development. The article is devoted to a comprehensive analysis of the role of land auctions as a key tool for optimizing this process. The paper systematizes and reveals in detail the advantages of the auction mechanism, including ensuring price efficiency, transparency and competitive access to a public resource. Special attention is paid to identifying and analyzing systemic «failures» of the mechanism, such as the risks of collusion between participants, strategic behavior leading to failed auctions, and non-accounting of non-price parameters of land use efficiency. Based on the analysis, a system of practical recommendations for optimizing the design of land auctions has been developed. Differentiation of auction formats, active digitalization of processes, stricter criteria for the provision of land without bidding, as well as the introduction of monitoring of the post-auction behavior of the winners are proposed.