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Interactions Across Firms and Bid Rigging
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0002-7905-1825
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0001-6094-9099
2020 (English)In: Review of Industrial Organization, ISSN 0889-938X, E-ISSN 1573-7160, Vol. 56, no 1, p. 107-130Article in journal (Refereed) Published
Abstract [en]

We evaluate whether an econometric technique that is used in the spatial econometrics and network effects literature can be adopted as a test for collusive bidding in public procurement auctions. The proposed method is applied to the Swedish asphalt cartel that was discovered in 2001. Our dataset covers the period 1995–2009, which makes it possible to test for conditional independence between complementary cartel bids before and after 2001. Our estimates show a significant positive correlation between complementary cartel bids during the cartel period, whereas a non-significant correlation is shown during the later period. The variance of the parameter estimate of interest also differs between the periods, which suggests a structural change in bidding behavior among cartel members between the two periods.

Place, publisher, year, edition, pages
Springer, 2020. Vol. 56, no 1, p. 107-130
Keywords [en]
Antitrust, Auction, Cartel and collusion, Complementary bidding, Public procurement, Networks, Spatial econometrics
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-154921DOI: 10.1007/s11151-018-09676-0ISI: 000511922800006Scopus ID: 2-s2.0-85059699162OAI: oai:DiVA.org:umu-154921DiVA, id: diva2:1275356
Funder
Swedish Competition Authority
Note

Special Issue: SI

First published online: 04 January 2019

Available from: 2019-01-05 Created: 2019-01-05 Last updated: 2023-03-23Bibliographically approved

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Lundberg, JohanLundberg, Sofia

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CiteExportLink to record
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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