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Detecting Collusion on Highway Procurement

Author

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  • Florencia M. Gabrielli

    (Universidad Nacional de Cuyo - CONICET)

Abstract

This paper proposes a procedure to detect collusion in asymmetric first-price procurement. The main objective is twofold. First, to provide a methodology to detect collusion using a structural approach, and second to apply the methodology to field data on procurement auctions for highway construction in California. I identify two different sets of firms as potential ring members. Relying on an exogenous number of bidders and the assumption that within each type bidders are symmetric, I find evidence supporting the collusive scheme, for the two mentioned sets of firms by comparing a model of competition and a model of collusion.

Suggested Citation

  • Florencia M. Gabrielli, 2013. "Detecting Collusion on Highway Procurement," Económica, Instituto de Investigaciones Económicas, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 59, pages 127-165, January-D.
    • Handle: RePEc:akh:journl:588
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    File URL: https://revistas.unlp.edu.ar/Economica/article/view/5355/4384
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    More about this item

    Keywords

    Auctions; Cartel; Structural Approach; Collusion; Competition.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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