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On the Competitive Effects of Screening in Procurement
| Content Provider | Scilit |
|---|---|
| Author | Pigon, Adam Seres, Gyula |
| Copyright Year | 2019 |
| Description | Journal: SSRN Electronic Journal Procuring authorities frequently use screening in order to mitigate risky bids. This study estimates the effect of bid screening and litigation on entry and bidding using a unique data set on highway construction procurement auctions in Poland. The market exhibits a screening method that ex post selects eligible offers. We demonstrate with an empirical model that this method disproportionately affects small firms and creates a barrier to entry. Our results suggest that screening increases bids by two channels. First, it directly inflates bids as well as decreasing entry. Second, in a competitive market, lower entry also inflates bids and prices. |
| Related Links | http://ibs.org.pl//app/uploads/2019/09/IBS_Working_Paper_08_2019.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3392328 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3392328 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2019-05-14 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Agricultural Economics Market Design |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |