We show that Auslander algebras have a unique tilting and cotilting module which is generated and cogenerated by a projective-injective; its endomorphism ring is called the projective quotient algebra. For any representation-finite algebra, we use the projective quotient algebra to construct desingularizations of quiver Grassmannians, orbit closures in representation varieties, and their desingularizations. This generalizes results of Cerulli Irelli, Feigin and Reineke.
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