IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v41y2011i3p263-277.html
   My bibliography  Save this article

Quantitative Methods for a New Configuration of Territorial Units in a Chilean Government Agency Tender Process

Author

Listed:
  • Guillermo Durán

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile; Departamento de Matemática, FCEN, Universidad de Buenos Aires, Buenos Aires, Argentina; CONICET, Argentina)

  • Rafael Epstein

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile)

  • Cristian Martinez

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile)

  • Gonzalo Andres Zamorano

    (Departamento de Ingeniería Industrial, FCFM, Universidad de Chile, 8370439 Santiago, Chile)

Abstract

The Junta Nacional de Auxilio Escolar y Becas (JUNAEB) is an agency of the Chilean government with responsibility for promoting the integration and retention of socially vulnerable children in the country's school system. Its services include a school meals program under which private firms bid on supply contracts for territorial units within Chile. Before 2007, these units were defined manually and their attractiveness to potential suppliers varied. This led to a series of problems for the government, both in the contract tender process and the service provided. In this paper, we apply operations research methodologies to determine new configurations of the territorial units to ensure that their attractiveness is similar and that schools in each region of the country receive meal service of similar, good quality. This homogenization of the units' attractiveness helps reduce the uncertainty and bankruptcy risk that suppliers face, thus benefitting the entire system. Since 2007, JUNAEB has used the configurations we proposed.

Suggested Citation

  • Guillermo Durán & Rafael Epstein & Cristian Martinez & Gonzalo Andres Zamorano, 2011. "Quantitative Methods for a New Configuration of Territorial Units in a Chilean Government Agency Tender Process," Interfaces, INFORMS, vol. 41(3), pages 263-277, June.
  • Handle: RePEc:inm:orinte:v:41:y:2011:i:3:p:263-277
    DOI: 10.1287/inte.1100.0537
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1100.0537
    Download Restriction: no

    File URL: https://libkey.io/10.1287/inte.1100.0537?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rafael Epstein & Lysette Henríquez & Jaime Catalán & Gabriel Y. Weintraub & Cristián Martínez, 2002. "A Combinational Auction Improves School Meals in Chile," Interfaces, INFORMS, vol. 32(6), pages 1-14, December.
    2. Francesco Decarolis, 2009. "When the highest bidder loses the auction: theory and evidence from public procurement," Temi di discussione (Economic working papers) 717, Bank of Italy, Economic Research and International Relations Area.
    3. Thaler, Richard H, 1988. "Anomalies: The Winner's Curse," Journal of Economic Perspectives, American Economic Association, vol. 2(1), pages 191-202, Winter.
    4. Raymond G. Taylor & Michael L. Vasu & James F. Causby, 1999. "Integrated Planning for School and Community: The Case of Johnston County, North Carolina," Interfaces, INFORMS, vol. 29(1), pages 67-89, February.
    5. F Caro & T Shirabe & M Guignard & A Weintraub, 2004. "School redistricting: embedding GIS tools with integer programming," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 836-849, August.
    6. Marcos Goycoolea & Alan T. Murray & Francisco Barahona & Rafael Epstein & Andrés Weintraub, 2005. "Harvest Scheduling Subject to Maximum Area Restrictions: Exploring Exact Approaches," Operations Research, INFORMS, vol. 53(3), pages 490-500, June.
    7. Sarah Parlane, 2003. "Procurement Contracts under Limited Liability," The Economic and Social Review, Economic and Social Studies, vol. 34(1), pages 1-21.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. F. Bonomo & J. Catalán & G. Durán & R. Epstein & M. Guajardo & A. Jawtuschenko & J. Marenco, 2017. "An asymmetric multi-item auction with quantity discounts applied to Internet service procurement in Buenos Aires public schools," Annals of Operations Research, Springer, vol. 258(2), pages 569-585, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burguet, Roberto & Ganuza, Juan-José & Hauk, Esther, 2012. "Limited liability and mechanism design in procurement," Games and Economic Behavior, Elsevier, vol. 76(1), pages 15-25.
    2. Sander Onderstal & Ailko van der Veen, 2011. "Keeping out Trojan Horses: Auctions and Bankruptcy in the Laboratory," Tinbergen Institute Discussion Papers 11-024/1, Tinbergen Institute.
    3. Ottorino Chillemi & Claudio Mezzetti, 2014. "Optimal procurement mechanisms: bidding on price and damages for breach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(2), pages 335-355, February.
    4. Wei-Shiun Chang & Timothy C. Salmon & Krista J. Saral, 2016. "Procurement Auctions With Renegotiation And Wealth Constraints," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1684-1704, July.
    5. Lagziel, David, 2019. "Credit auctions and bid caps," Games and Economic Behavior, Elsevier, vol. 113(C), pages 416-422.
    6. Eric Delmelle & Jean-Claude Thill & Dominique Peeters & Isabelle Thomas, 2014. "A multi-period capacitated school location problem with modular equipment and closest assignment considerations," Journal of Geographical Systems, Springer, vol. 16(3), pages 263-286, July.
    7. Oleksii Birulin & Sergei Izmalkov, 2022. "On advance payments in tenders with budget constrained contractors," RAND Journal of Economics, RAND Corporation, vol. 53(4), pages 733-762, December.
    8. Cade Massey & Richard Thaler, 2005. "Overconfidence vs. Market Efficiency in the National Football League," NBER Working Papers 11270, National Bureau of Economic Research, Inc.
    9. Glenn Boyle & Gerald Ward, 2016. "Do Better Informed Investors Always Do Better?," Working Papers in Economics 16/29, University of Canterbury, Department of Economics and Finance.
    10. Dries R. Goossens & Sander Onderstal & Jan Pijnacker & Frits C. R. Spieksma, 2014. "Solids: A Combinatorial Auction for Real Estate," Interfaces, INFORMS, vol. 44(4), pages 351-363, August.
    11. Andrea Morone & Simone Nuzzo & Rocco Caferra, 2019. "The Dollar Auction Game: A Laboratory Comparison Between Individuals and Groups," Group Decision and Negotiation, Springer, vol. 28(1), pages 79-98, February.
    12. Evan Piermont, 2021. "Hypothetical Expected Utility," Papers 2106.15979, arXiv.org, revised Jul 2021.
    13. Peeters Ronald & Tenev Anastas P., 2018. "Number of Bidders and the Winner’s Curse," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-4, July.
    14. Hendricks, Kenneth & Porter, Robert H & Spady, Richard H, 1989. "Random Reservation Prices and Bidding Behavior in OCS Drainage Auctions," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 83-106, October.
    15. Isabel Martins & Filipe Alvelos & Miguel Constantino, 2012. "A branch-and-price approach for harvest scheduling subject to maximum area restrictions," Computational Optimization and Applications, Springer, vol. 51(1), pages 363-385, January.
    16. Tobias Gesche, 2022. "Reference‐price shifts and customer antagonism: Evidence from reviews for online auctions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(3), pages 558-578, August.
    17. Brice Corgnet & Mark Desantis & David Porter, 2018. "What Makes a Good Trader? On the Role of Intuition and Reflection on Trader Performance," Journal of Finance, American Finance Association, vol. 73(3), pages 1113-1137, June.
    18. Sinha, Ankur & Rämö, Janne & Malo, Pekka & Kallio, Markku & Tahvonen, Olli, 2017. "Optimal management of naturally regenerating uneven-aged forests," European Journal of Operational Research, Elsevier, vol. 256(3), pages 886-900.
    19. David Lagziel & Ehud Lehrer, 2019. "A Bias of Screening," American Economic Review: Insights, American Economic Association, vol. 1(3), pages 343-356, December.
    20. Fleck, Ann-Katrin & Anatolitis, Vasilios, 2023. "Achieving the objectives of renewable energy policy – Insights from renewable energy auction design in Europe," Energy Policy, Elsevier, vol. 173(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:41:y:2011:i:3:p:263-277. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.