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On cartel detection and Moran’s I
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
2017 (English)In: Letters in spatial and resource sciences, ISSN 1864-4031, E-ISSN 1864-404X, Vol. 10, no 1, 129-139 p.Article in journal (Refereed) Published
Abstract [en]

This paper explores the potential of using the Moran’s I statistic to detect complementary bidding on public contracts. The test is applied to data concerning the so-called Swedish asphalt cartel, which was discovered in 2001. Using information on submitted bids and procurement characteristics for both the cartel period (1995–2001) and the post-cartel period (2003–2009), the Moran’s I correctly predicts complementary bidding behavior for linear and quadratic specifications when such behavior is likely to exist, and rejects such behavior when it’s unlikely to be present. Remarkably, the Moran’s I also correctly indicates and rejects complementary bidding on the basis of information on the separate bids alone.

Place, publisher, year, edition, pages
2017. Vol. 10, no 1, 129-139 p.
Keyword [en]
Antitrust, Auction, Cartel and collusion, Complementary bidding, Public procurement, Spatial econometrics
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-129259DOI: 10.1007/s12076-016-0176-4OAI: oai:DiVA.org:umu-129259DiVA: diva2:1058939
Funder
Swedish Competition Authority
Available from: 2016-12-21 Created: 2016-12-21 Last updated: 2017-03-21Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf