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Design of public procurement auctions: evidence from cleaning contracts
University of Jyväskylä, School of Business and Economics.
Umeå universitet, Samhällsvetenskapliga fakulteten, Handelshögskolan vid Umeå universitet, Nationalekonomi.ORCID-id: 0000-0001-6094-9099
Aalto University & KU Leuven, Faculty of Business and Economics (FBE); CEPR.
2018 (Engelska)Ingår i: The Rand Journal of Economics, ISSN 0741-6261, E-ISSN 1756-2171, Vol. 49, nr 2, s. 398-426Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

We analyze a regime change from beauty contests to first‐price sealed‐bid and scoring auctions, using Swedish data on public procurement of cleaning services. In beauty contests, the lowest bid often lost, leaving substantial money on the table. The procurement costs were similar before and after the regime change: (i) Entry strongly decreases the procurement cost but did not change. Entry would have decreased had the municipalities not adjusted the objects of auctions. (ii) Municipalities favored in‐house suppliers in the old regime, leading to more aggressive bidding by others. With favoritism reduced, these changes balanced each other out.

Ort, förlag, år, upplaga, sidor
Wiley-Blackwell, 2018. Vol. 49, nr 2, s. 398-426
Nyckelord [en]
Auction, bidding, regulation, procurement, first-price sealed bid auction, economically most advantageous tender, public contracts, purchasing
Nationell ämneskategori
Nationalekonomi
Forskningsämne
nationalekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-147520DOI: 10.1111/1756-2171.12232ISI: 000431681900005Scopus ID: 2-s2.0-85046482722OAI: oai:DiVA.org:umu-147520DiVA, id: diva2:1203889
Tillgänglig från: 2018-05-04 Skapad: 2018-05-04 Senast uppdaterad: 2024-01-17Bibliografiskt granskad

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Totalt: 706 träffar
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