The Outsider and Sunk Cost Effects on 'Dango' in Public Procurement Bidding: An Experimental Analysis
AbstractThis paper presents the result of experiments for finding some insight into an effect of the new bidding system in Japanese public construction works procurement on bidders' collusion, which is called 'dango'. We focused on an effect of the entry of an outsider who is not a dango member. The main conclusion of the experiments is that an outsider, a subject who is not allowed to communicate with other subjects, has a robust effect to prevent other subjects from colluding and to make the winning price decrease considerably.
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Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0514.
Length: 54 pages
Date of creation: 2000
Date of revision:
CONSTRUCTION ; PRICES ; BIDDING;
Find related papers by JEL classification:
- L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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